All results were further undermined by negative foreign exchange adjustments, with sales revenues down 17.2% to $261.6 million; earnings before interest, tax, depreciation and amortisation (Ebitda) down 32% to $11.7 million and after-tax profit down 51% to $4.02 million.
ABN Amro Craigs broker Peter McIntyre said the result was not surprising and reflected the diminishing amount of goods and services going through the economy.
"Logistics and distribution companies historically do not do well in a recession," Mr McIntyre said.
In the past six weeks Mainfreight shares had gained 16% in value from $4.15 and opened yesterday at $4.76, closing up at $4.90 on reasonable volumes.
Mainfreight Group managing director Don Braid said, "Trading conditions in all countries during the first three months of the financial year [to June] were difficult and followed trading similar to that experienced during January to March 2009".
Forsyth Barr broker Suzanne Kinnaird said the first-quarter result was seasonally the worst.
"The deterioration in the first quarter was worse than expected and we will be downgrading our full-year 2010 profit forecasts," she said.
Currency fluctuations assisted about half of Mainfreight's $15 million debt reduction, from $115 million down to $100 million.
Its bank debt facilities were renegotiated through to June 2012, in tranches of $NZ125 million and $US50 million, Mr Braid said.
Sales and Ebitda in New Zealand domestic divisions were down respectively 17.8% to $62 million and 28.2% to $5.8 million.
Warehousing volumes picked up in the second quarter as customers began rebuilding inventories.
For New Zealand international, airfreight contributed "significantly" to an Ebita increase of 22% to $790,000, while revenue was down 3% at $23.2 million, Mr Braid said.
In Australia, all operations improved with domestic and international Ebitda up respectively 28.6% to $1.96 million and 78% to $1.55 million.
Mr Braid said the acquisition of Halford revenues assisted while import volumes continued to be eroded by recession.
In the United States, total revenues, including negative foreign exchange adjustments, were down 35% to $84.85 million, mainly from its Mainfreight USA division, where revenue fell from $61.7 million to $47.7 million.
Asia revenues were up almost 7% to $5.3 million, on the back of foreign exchange fluctuations, while, overall freight volumes were "substantially" below the corresponding period last year.
