Bradken Limited has reported a net profit of $38.2 million in the December 2010 half year, a 49 per cent increase from the same period the previous year.
“The Mining and Capital Products businesses performed exceptionally well with the non-rail businesses reporting an increase on HY10 in EBITDA of 56 per cent on a sales increase of 34 per cent,” managing director Brian Hodges said.
As a result of competition from Chinese manufacturers, sales revenue was down 26 per cent in its Rail Division due to a mix change from coal to iron ore wagon production and reduced market pricing; although 684 wagons were delivered, with
“Sales revenue for the Mining Products Division increased by 23 per cent on the HY10 results. Mining production levels have recovered, positively impacting products sales and capital goods such as crawler systems and buckets, with sales of crawler systems 133 per cent up on HY10. Gross margins were maintained over the last six months,” the company said in its half yearly report.
Mining, export locomotive and energy markets all improved significantly and its Almac acquisition boosted sales in the resources business.
The company says it will continue to focus on key strengths in the design, manufacture and supply of consumable products to the mining, energy and rail industries.
It also says it will “continue to take advantage of growth in its core resources and energy markets” and “following a slow January in the Australian operations due to climate induces issues, the balance of FY11 is expected to see all mining businesses continue to expand.”