4 Jul 2013

Freightways shares down

7:02 pm on 4 July 2013

Shares in Freightways have fallen nearly 7% after the company's earnings guidance fell below market expectations.

The courier and data management company said on Thursday it expects to make an after-tax profit of around $38 million for the 12 months ended June, up 6% on the previous year.

Operating earnings are expected to lift by 5% to $65 million.

Freightways believes it will make similar increases in profit and earning in the 2014 financial year.

Devon Funds Management portfolio manager Chris Gaskin said the latest guidance was lower than what the market was expecting.

But Freightways chief executive Dean Bracewell, said the current forecast is simply more realistic in the current economic environment.

"We see a positive outlook for the company through out 2014, but no not as positive as analysts had been expecting, so we felt that we should just let them know 2014 will be positive, but not quite as positive as some had been hoping for."

Freightways shares were down 30 cents to $4.21 on Thursday.