Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to $77.6 million, fuelled by record operating revenue of $192 million. Much of the 192% year-on-year rise was attributed to Industrea’s acquisitions over the past two years.
The latest acquisition was mining contractor Huddy’s Plant Hire which Industrea picked up in February this year for $250 million.
The Huddy’s acquisition followed the August 2007 purchase of Boart Longyear’s mining capital equipment business for $10 million.
The success of the Boart acquisition was felt quickly with the group securing a contract from Anglo Coal’s Moranbah North mine in November 2007.
Industrea beat international competition to secure the $16.7 million contract to supply underground longwall transport equipment to transport Moranbah’s massive roof supports – the largest in the world.
Industrea will supply equipment weighing up to 85 tonnes with carrying capacity of 70t.
“Industrea is the only company in the world that is currently able to offer underground longwall transport equipment of this size,” Industrea said.
“This specialised equipment with its huge carrying capacity is increasingly in demand as technology improves and producers focus on larger coal seams.”
The company also made inroads into Russia securing a deal to supply directional drilling and coal seam degasification equipment from wholly owned subsidiary Advanced Mining Technologies.
Industrea said Russia was a strategic market along with China, India and South America.
Industrea has continued its sales momentum into this financial year, already closing a $2.5 million deal for the sale of two underground longwall roof support carriers to a new client in Inner Mongolia.
Teaming up with its underground transport products from Boart Longyear and PJ Berriman, Industrea added US-based Petitto to its offering in August last year. Industrea signed a deal as the exclusive agency for the sale and service of the Petitto product in Australia, New Zealand, China and Mongolia.
Adding to its electrically powered longwall equipment installation and removal machines – the Petitto Mule, Pack Mule and Mule Haul – the company has also recently developed a new machine capable of lifting and carrying longwall equipment up to 50t.
Industrea said there were significant opportunities for the sale of this larger machine in Australia and China.
Looking ahead, Industrea forecast more record profits for the 2009 financial year, predicting revenues of $330–350 million and net profit after tax of $55–60 million.
Industrea was trading mid-morning today at 51.5c.
