Sales revenue gained 7.9% to hit $545.3million. Earnings before interest, tax, and depreciation were up 2.6% to $101million and reported after-tax profit up 22.3% to $60.9million.
Freightways managing director Dean Bracewell said its business models, people expertise and the positive market features were again evident in this full-year result.
``This result has been achieved in a year that has included the challenges of a significant natural disaster [the Kaikoura earthquake], the completion of a number of major capacity-related projects and at a time of strong growth in volumes and related activity,'' he said in a statement.
The imputed final dividend was up 2% on a year ago to 14.75c per share. Freightways shares slipped 1.85% to $7.95 following the announcement.
Forsyth Barr broker Suzanne Kinnaird said they were ``broadly in line'' with consensus forecasts.
She noted the express package and business mail division revenue growth was elevated at more than 9.1% through second-half trading. Freightways had noted strong volume growth throughout the year.
Mr Bracewell said capacity investment would be made in 2018 in the express package and business mail division in both airfreight, including South Island delivery, and premises; notably Auckland, to assist current volumes and projected growth.
Mrs Kinnaird said the management's outlook commentary was supportive to profit growth for full year 2018.
``Freightways' key markets remain positive with volume increases anticipated,'' she said.
Craigs Investment Partners broker Chris Timms said $60.9million profit was largely in line with expectations while underlying profit of $56.6million was modestly softer than expectations
``Overall, top-line momentum appears to be better than we had expected. However, this has come at lower margins across both segments,'' Mr Timms said.
He noted the solid volume outlook now required more investment in capacity, costing around $17million.
Mr Bracewell said Freightways markets in both New Zealand and Australia remained positive.
``Volumes and activity levels experienced throughout 2017 are expected to increase during 2018, from both existing and new customers.
Accordingly, Freightways is again targeting year-on-year earnings growth,'' Mr Bracewell said.
He said strategic growth opportunities, including acquisitions and alliances which complemented existing capabilities, would be executed, where they made commercial sense.
Net debt was up $6million to $158million against last year. Freightways had booked $24million of capital expenditure in its new Christchurch and Sydney premises, IT infrastructure and in providing capacity for growth in both divisions.
