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Tourism Holdings Boosts Earning Forecast

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May 23, 2011 by   Leave a Comment

New Zealand-based Tourism Holdings is boosting its earnings forecast after better-than-expected United States vehicle sales and improved rentals following the Christchurch earthquake.

The New Zealand Herald reported that the tourism operator – which is the target of a takeover attempt – upgraded its forecast operating earnings before interest and tax (ebit) for the year ending June 30 to $4 million from break-even. Its operating loss after tax is now put at $1.4 million, compared with a previously expected $4 million loss.

Tourism Holdings’ assets include car and motorhome rentals in Australia, New Zealand and the U.S., Waitomo Glowworm Caves, motorhome manufacturing in Hamilton and Kiwi Experience backpacker transport.

The improved outlook included better-than-expected vehicle sales volumes and margins in the U.S., which would result in a small earnings gain for the six months ending June 30 for the Road Bear RV Rentals and Sales business bought last year.

New Zealand rentals improved primarily because of motorhome use after the earthquake in February.

Costs had also improved compared to the previous forecast.

Tourism Holdings forecast earnings for the 2012 financial year of about $17 million, with net profit after tax of $6 million.

Chief executive Grant Webster said: “We’re happy that that’s a good step forward from where we are and it’s a realistic step forward and then we’ll be looking for further gains the following year.”

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