WesTrac profit skyrockets

WesTrac earthmoving equipment group has posted a first half earnings rise of 41 percent, above its own forecasts.

The company’s EBITDA rose to $131 million in the six months to 31 December, an increase of $39 million from the previous corresponding period’s $92 million earnings.

At this rate, the company is well on track to meet its EBTIDA guidance of $230 million.

Its revenue grew at a slower rate than its earnings, rising only 37% from $1.05 billion to $1.44 billion.

The majority of revenue came from Australia, riding on the back of the reinvigorated mining industry, which helped to protect the company from seasonal slowdowns in China.

"The company’s growth in Australia is being driven by expansion in coal and iron ore mining, with 81 per cent growth in capital sales and a climb in EBITDA," it said in a statement.

WesTrac is the main distributor of Caterpillar equipment in Australia.

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