AusRAIL, Market Sectors

Mining boom greases Bradken’s rails

<p>Resources rolling stock builder Bradken’s annual results, released yesterday (Tuesday, August 7), show the strength of mining export sector remains undiminished.</p> <p>Net profits after tax for rose 45% to $49.1m, confirming &#8220Bradken’s ability to continue to grow profitability through a combination of increased mining and rail volumes, further expansion of EBITDA (earnings before interest, taxation, depreciation and amortisation) margin and targeted acquisitions&#8221, managing director Brian Hodges said.</p> <p>A highlight was that, In June, the firm’s rail division handed over of its 4,000th iron ore wagon to Rio Tinto Iron Ore’s railways division. </p> <p>&#8220Sales of iron ore wagons along with higher refurbishment and parts sales offset lower volumes for bogies and general freight work, resulting in a strong increase in sales revenue up 15% in FY07 for the rail division,&#8221 Mr Hodges said. </p> <p>&#8220We are confident that Bradken’s main drivers of growth, being mining volumes and rail demand, expansion of EBITDA margin, and acquisitions will continue to provide a platform for sustainable long-term earnings growth.</p> <p>&#8220We will continue to review potential targeted acquisitions in Australia and overseas, which are consistent with our business model, to complement further the current product offering and improve the overall quality of earnings.&#8221 </p> <br />