| Queensland
automotive parts maker CMI Limited today announced it was on track for
strong full year earnings growth, following a 21% lift in first half
profit after tax to $2,534,060 (2001 Dec Half: $2,100,308).
The company said its full year earnings would be bolstered by the first
time inclusion of additional revenue from its two recent acquisitions,
Toowoomba Metal Technologies and National Forge, in the second half
results, which were expected to be ahead of the 6 months’ profit
ending 31st December 2002. CMI expects the acquisitions to generate
annualised sales in excess of $60 million.
Expanding supply arrangements for Ford’s new model Falcon and
Holden’s burgeoning export program, along with an improved performance
by TJM, the group’s national 4WD parts division, helped push CMI’s
revenue 25% higher to $79,554,544 in the six months to 31 December,
2002. (2001 Dec Half: $63,577,109).
CMI’s executive chairman, Max Hofmeister said a 36% jump in EBITDA
to $8,127,943 (2001 Dec Half: $5,967,991) had been offset by significantly
higher first half borrowing costs as a result of the two acquisitions,
with interest and finance charges for the period totaling $1,416,278
(2001 Dec Half: $918,295).
Mr Hofmeister said CMI was currently preparing a prospectus for shareholders
and for a capital raising of around $11 million to reduce the acquisition-incurred
bank borrowings and fund further upgrades to its manufacturing technology.
“We expect to release full details of a fully underwritten capital
raising and lodge a prospectus with ASIC within the next two weeks.
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“Our
strong first half sales performance reflects our investment over recent
year’s of around $9 million in new technology to expand our relationships
with long-standing customers such as Holden, Ford, Dana, Autoliv and
Pacifica’s US subsidiary PBR. This investment together with the
recent acquisitions is reflected in the substantial increase in first
half depreciation and amortisation chrages.
“A major feature
of this upgrade was the relocation during the first half of our previous
Campbellfield operation to a significantly enlarged, world-class manufacturing
facility immediately adjacent to Ford’s Broadmeadow plant,”
he said.
Mr Hofmeister said CMI was also anticipating a higher second half contribution
from its US operations through its recently opened second distribution
centre in South Carolina.
He said CMI was strongly placed to capitalise on industry forecasts
of further strong sales for Australia’s car makers in 2003, with
the company aiming to break the $200 million revenue barrier in the
2003/2004 financial year.
CMI’s directors have declared an interim 5 cents per share fully
franked dividend for ordinary shareholders (2002 Dec Half: 5 cents per
share fully franked), payable on 30 May 2003. Record closing date for
the dividend payment is 19 May, 2003. CMI directors also declared a
quarterly fully franked preferential share dividend at 3.125 cents to
be paid on 3 March 2003.
Mr Hofmeister said that based on full year expectations CMI was confident
of at least matching the prior year’s full dividend rate of 10
cents per share fully franked for ordinary shareholders, and of meeting
its scheduled distribution of 12.5 cents fully franked to convertible
preference shareholders.
Further Information
Please Contact:
Max Hofmeister
CMI Limited
(07) 3229 0716
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