Industrea forecasts drop in 1H profit
Industrea Limited (IDL) expects an adjusted NPAT for the half year in the range of $17.2 - $17.8 million, down from $24.6 million in the previous corresponding period. The mining products and services provider said the expected decline was due to Handlebar Hill revenue in previous period and timing of technology sales.
However, Industrea forecast strong growth in revenues and profits for the full year due to continued expansion across key divisions.
The company said growth across mining services, diesel equipment, technology and international divisions is set to boost FY10 revenue to $300-330 million and deliver adjusted NPAT between $48-54 million.
Managing director and CEO, Robin Levison, said while the half year result reflected the impact of the global financial crisis on the Australian mining industry, the recent upturn in global commodity markets and China’s renewed push towards improved productivity and safety in its underground coal mining industry had positioned Industrea to achieve increased revenue and profits for the full year.
“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,” Mr Levison said.
”For Huddy’s, we are seeing increasing growth as industry confidence returns which has led us to recommence contract mining operations at Handlebar Hill.”
Mr Levison added that the company was also actively pursuing its global diversification strategy, with growth in export orders to other markets including South Africa and South America also anticipated.
”China though will remain the key market for Industrea, and we have already secured additional capacity for spares sales to the leading China Shenhua Group due to recurring orders from our Product Support Centre,” Mr levison said.
“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.”
At the close of trade Friday, Industrea shares were trading at 42.5c.
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