Transpacific to improve waste management
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Transpacific Industries has posted a strong rise in first half profit to $32.3 million but says more needs to be done to improve its waste management business.
Australia's largest waste management company on Friday said net profit quadrupled in the half year to December 31, from $7.8 million in the previous corresponding period.
However, Transpacific said the first half result included items which directors believed should be excluded so the result was more in line with the company's ongoing operations.
Underlying net profit rose to $35.8 million from $25.2 million.
Revenue from ordinary activities rose 3.8 per cent to $1.2 billion from $1.1 billion.
Chief executive Kevin Campbell said the performance of the group's waste management division, which saw earnings drop nearly eight per cent, had been disappointing.
"We are taking concrete actions to improve efficiency, lower operating costs, sell or close unprofitable or uneconomic businesses, and generate organic growth," he said in a statement.
He said the group's Cleanaway landfill businesses in Australia had been hit by the variation in landfill levies between NSW and Queensland.
The group was in talks with the state governments in an attempt to resolve what he said was an "untenable situation".
"We expect market conditions in the second half to remain similar to those experienced in the first half," he added.
Transpacific did not declare an interim dividend.