Mining equipment manufacturer Austin Engineering saw the good times return in the 2020 financial year resulting in a jump in profits.
The manufacturer of truck bodies and mining tools reported earnings before interest and tax depreciation and amortisation (EBITDA) up 34 per cent to $19.9 million delivering a net cash flow of $24.1 million.
Revenue was steady at $230.4 million, with the better profit result driven by strong results in Australia and Indonesia as high prices helped mining companies open their wallets to new investment.
The Perth company said the results were at a level ‘not seen since the mining boom of 2012.’
Austin managing director Peter Forsyth said the company’s diversified business brought benefits with strong geographies more than compensating for problems faced by the company’s South American businesses in Chile, Peru and Colombia.
“It also highlights the uneven flow of earnings across the year in the business with the second half delivering 80 per cent of EBITDA for the year.
“The outlook for the first half through to the end of 2021 continues to be strong.”
Austin’s Batam, Indonesia facility was hit by Covid-19 in the second half leading to a 25 per cent drop in revenue from the operation.
However delayed projects are now coming back online.
Picture: Austin Engineering
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