| Automotive
components supplier, CMI Limited is expecting continued strong demand
from Australia’s car manufacturing sector to drive its profit
higher in 2004 FY.
The company, which posted a 40% hike in after tax profit to a record
$7.22 million in the 2003 FY, today reported that the strong volumes
experienced by its Melbourne-based automotive components plants during
the last quarter of 2003 FY, looked likely to extend through to the
first half of 2004 FY.
Shareholders at today’s AGM were told that CMI’s Electrical
Components Division and TJM, its 4WD accessories business, were also
maintaining buoyant trading levels, and that the company’s 2003
acquisitions, CMI Forge and Toowoomba Metal Technologies combined would
make a first-up full year contribution of $60 million to the group’s
revenue base in 2004 FY.
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Executive
chairman Max Hofmeister said that as a result of CMI’s positive
start to the first quarter group revenue and profit were ahead of both
the prior corresponding period last year, and more importantly, budget
plans.
Mr Hofmeister said CMI would be a direct beneficiary of what was being
forecast as another record output year for Australia’s automotive
industry.
However, he cautioned shareholders to the possibility of pressure from
CMI’s major customers on the company’s pricing structures.
“As a result we will continue to focus during the year ahead on
identifying areas of CMI’s already lean business structure where
costs can realistically be reduced, Mr Hofmeister said.
Further Information
Please Contact:
Max Hofmeister/Warren Hill
CMI Limited
(07) 3004 8188
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