Turners Automotive: a safe harbour in turbulent times

Turners chief executive Todd Hunter. Source: Turners

You might not think the used car business was a useful place to look for refuge when financial markets are nosediving and a US president appears intent on upending the global trade system of the last 80 years.

But a listed company in the sector has proven it can steadily increase profits, even though the New Zealand economy has effectively been in recession for a couple of years.

Turners Automotive Group shares haven’t escaped the current market mahem – the shares were down nearly 3% to $5.58 on Monday and have dropped from $5.86 since President Trump lobbed his tariffs bomb onto world trade last week.

The shares are down from $6.21 in mid-February, the day the company issued its latest profit upgrade, telling the market to expect an annual pre-tax profit of at least $53 million for the year ended March, up from the previous guidance of at least $50 million and compared with $49.1 million the previous year.