The mining equipment supplier and contractor anticipates 2010 financial year revenue of $A300-330 million, up from $260 million in the 2009 financial year, and adjusted net profit after tax of $48-54 million, compared with $45 million.
Full-year results are subject to the timing of shipments for its diesel equipment and technology businesses, foreign exchange rates at the time of delivery and continued growth in spare parts sales from its new Product Support Centre in China.
First-half net profit is expected to be $17.2-17.8 million, compared to $24.6 million in the previous comparable period, due to subsidiary Huddy’s Mining Services losing the Xstrata Handlebar Hill contract in January 2009. Huddy’s has now returned to Handlebar.
“Industrea has commenced the new year on a positive note and we are seeing robust trading conditions for the second half across our expanding business divisions,” Industrea managing director Robin Levison said.
Huddy’s is anticipating further contracted work at Cockatoo Coal’s Baralaba coal mine and will also benefit from the expansion of its mining equipment fleet at Rio Tinto’s Mt Thorley Warkworth mine for the full six months of the second half, along with additional contract extensions in Queensland’s Mt Isa region.
Industrea’s diesel equipment division continues to gain from the coal production growth in China.
Industrea Mining Equipment built and shipped 18 vehicles in the first half, with 27 vehicles expected to be shipped in the second half to match rising demand for its longwall roof support and shearer carriers.
In addition, subsidiary PJ Berriman is running at full capacity in its domestic market and is examining plans to manufacture a vehicle solely for the Chinese market.
Industrea shipped four Advanced Mining Technologies directional drilling and methane gas drainage systems in the first half of FY2010, and expects to ship another five by April to China’s gassy mines, where a production and safety drive is in full swing with government and industry support.
Industrea also expects increased business in its spares line.
The company has secured additional capacity for spares sales to China Shenhua Group due to recurring orders from its Product Support Centre.
“Industrea has also been invited as a key equipment provider to the Shenhua Group to supply a range of spares to Shenhua’s private bonded warehouse complex, which should improve access to the wider group,” Levison said.
The company also expects growth in export orders to other markets, including South Africa and South America.
Industrea was trading up 2.35% mid-morning today at 43.5c.
