In Melbourne, transport giant Toll Holdings told shareholders yesterday that while conditions in the retail and industrial sectors are likely to remain challenging, it sees strength in other parts of the economy offsetting that weakness. Incoming chief executive Brian Kruger told the AGM that the company was experiencing mixed economic conditions.
"In the discretionary retail sector in particular, which makes up around 10 per cent of our Australian revenue, the coming weeks in the lead up to Christmas will be an important influence on our results for the first half of the year," he said.
"At this moment, it is still very difficult to predict how this will play out.
"However, there are parts of the domestic economy, particularly the resources sector, that we expect will offset any softness in those areas."
Strength in the resources sector would support the performance of Toll Holdings’ global resources division, and also flow through to a number of its general freight businesses such as Toll NQX and Toll Express, Mr Kruger said.
Conditions in the global forwarding market, or air and ocean freight, were very challenging, but that could present some attractive acquisition opportunities, Mr Kruger said.
"Our strategy to increase the spread of our businesses across different markets and geographies, and the growth opportunities we are pursuing, has us positioned very well to manage our way through what are generally tough economic conditions both here in Australia and in some of our overseas markets," he said.
Retiring CEO Paul Little (who steps down at the end of the year) took the opportunity in his last speech to shareholders to attack the Transport Workers Union and a senior official Tiny Sheldon.
"This year saw the completion of our TWU enterprise agreement with our Australian staff. It is a good outcome for the company and employees.
"Under the leadership of National Secretary Tony Sheldon, the TWU has been pushing a theme seeking to constrain the company’s flexibility in using contractors.
"This level of union interference in operations threatens to undermine our productivity and success.
"Over the years we have added tens of thousands of Australian employees and they do a great job. But the seasonal peaks and troughs require the use of contractors and we need to pay them market rates.
"Toll is the country’s leading employer of TWU members.
"Instead of trying to micro manage our business, Tony Sheldon and the TWU should be focusing on our competitors whose employees receive nothing close to Toll’s rates of pay and conditions.
"Tony Sheldon seems to have his priorities wrong.
"One example is their misleading campaign with the Teamsters in the US. We employ around 75 wharf cartage drivers around the ports in Los Angeles.
"Given the significant opportunities the Toll Group has provided thousands of TWU members in Australia, it is deeply disturbing that they are spending their time and members’ funds attacking us rather than focusing on our competitors in Australia who do not meet our standards," Mr Little told shareholders.
Toll shares eased 2c to $4.79.
