PROFITS FOR SEDGMAN AND INDUSTREA

Written on the 13 September 2010

PROFITS FOR SEDGMAN AND INDUSTREA

MINING services companies Sedgman Limited (SDM) and Industrea Limited (IDL) have both announced profit rises today for FY10, with strong international sales and positive outlooks for 2010.

Milton-based Sedgman recorded a 252 per cent boost in net profit after tax profit (NPAT) to $25 million, while Industrea recorded an 8 per cent rise to $49.1 million.

Sedgman managing director Mark Read (pictured) says the company’s order book now stands at $706 million, with staff numbers up 17 per cent to keep up with increased demand.

“Our international expansion strategy is delivering substantial benefits. We are securing major engineering, procurement and construction (EPC) projects and our order book and pipeline of targeted projects are now at record levels,” he says.

“Sedgman’s order book now stands at $706 million and has increased by $176 million over the past 12 months. Targeted projects in our three-year pipeline have increased by $1.5 billion to $6.3 billion.

“We expect to achieve further growth in our order book and to capitalise on the increasing number of coal and metals project opportunities in both Australia and overseas.”

Industrea’s diesel equipment and technology division doubled its export sales to $136 million in FY10. CEO Robin Levison highlights the important role China has played in the result.

“China’s expansionary coal sector, which is growing at around 9 per cent or 300 million tonnes per annum and the government’s mandate to significantly lift underground mine productivity and safety drove another outstanding performance by our diesel equipment and technology business,” he says.

“Our position as a supplier of choice to an increasingly diverse group of China’s leading coal producers for specialist longwall roof support carriers, methane gas drainage and collision avoidance systems generated on average about $10 million per month in new contract wins throughout the year.”

Industrea is currently developing a flameproof and explosion-proof personnel and materials vehicle exclusively for China’s underground coal mining market, with completion expected mid-2011.

Levison also points to opportunities in the emerging markets of India, Indonesia and Russia.

“Similar to China, India is also undertaking a vigorous modernisation and urbanisation program. Accordingly, we are targeting India’s rapidly expanding underground coal sector’s demand for mechanised safety and productivity equipment,” he says.

“We are also receiving increasing enquiry levels from Indonesia and we view this market as a primary target with its domestic thermal coal production increasing rapidly to fuel escalating domestic consumption and exports to Asia.

“Whilst our focus will remain squarely on driving organic growth through these widening market opportunities, we are continuing to investigate opportunities where bolt-on acquisitions can add immediately accretive value to our proven business model.”

SDM shares rose 2.8 per cent this morning to $1.65, while IDL shares rose 4.4 per cent to $0.355.


Latest News

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter