Austin spruiks global order book momentum

Mining equipment manufacturer Austin Engineering has revealed it has been awarded purchase orders for significant previously anticipated programmes that will contribute to a growing order book for the current and subsequent financial years.

Austin in Chile has been awarded the first tranche of purchase orders for OEM style truck trays worth circa $7 million to be delivered in the remainder of this financial year.

This is the initial order in a programme which has been discussed with the customer to last for up to nine years, and is expected to be the first in a series of ongoing orders from the customer in several of Austin’s jurisdictions, with manufacturing to occur in Chile and Indonesia.

The order came as Austin detailed recent contract progress and confirmed its outlook for FY 24 for full year revenue to grow by circa 24 percent to $310 million – $330 million, and NPAT to increase by circa 75 percent to $31 million – $33 million.

Austin CEO and Managing Director David Singleton, said: “Developing long term partnerships based on repeat business with high quality customers is a key focus for our strategy.

“These new long-term programmes and the extension of an existing agreement are important steps in that strategy.

“It is also pleasing to see that these initiatives will have an impact across all of our businesses.”

Meanwhile the company said in a statement that Austin in USA had signed an extension for up to five years for its biggest ongoing single supply arrangement for truck trays, with deliveries into the USA, Canada and Chile.

“Austin’s track record of innovation and reliable supply, leading to positive returns on investment for the customer, was a key rationale for the extension.

“Initial purchase orders have now been placed which will lead to deliveries starting in this financial year and continuing into FY25.

“This programme is likely to be worth circa $20 million per annum subject to customer demand.”

Austin in Indonesia has also delivered the first two refurbished haul truck chassis frames to its customer at the start of what is expected to be a multi-year, production program that will increase over time.

A further frame is expected to be delivered this month with eight more now on order.

In addition, the customer has provided initial purchase orders for new matching truck trays for the refurbished truck fleet which are expected to form the start of an ongoing production during future years.

The purchase orders for chassis frames and truck trays placed to date are worth approximately $3 million.

“This is a new and valued programme for Austin, which is expected to further increase the already high utilisation of the two manufacturing units in Batam (Indonesia).”

Picture: Austin Engineering/Perth facility