| Record
Australian car sales, recent acquisitions and an improved performance
from its 4WD accessories business, TJM, have helped drive automotive
components maker CMI Limited's profit after tax for the year to 30 June
2003 up 39.9% to $7,229,081. The result represents basic earnings per
share of 18.29 cents*, up 50.9% on the prior year.
Directors said expanding supply arrangements with Australia's car makers
and their tier one suppliers, combined with first-up contributions in
the second half from the two acquisitions made in fiscal 2003-Toowoomba
Metal Technologies (TMT) and CMI Forge-had pushed revenue for the year
up 50% to a record $196,044,781.
Other contributing factors to the record revenue and profit result included:
- continued sales growth
by the company's Electrical Components division, particularly to the
mining sector;
- a strong performance
by CMI's New Zealand based spring manufacturing business; and
- a 25% increase in
sales from CMI's US operations which distributes brake components
and 4WD accessories to that market.
The company announced
it intends to pay a final fully franked dividend of 5 cents per ordinary
share, lifting the full year's payout to 10 cents fully franked per
ordinary share. Book closing date for registerable securities is 10
October 2003.
| Year to |
June 2003
$’000 |
June 2002
$’000 |
Change |
| Total Revenues |
196,045 |
130,380 |
+50.4% |
| EBIT |
13,977 |
9,766 |
|
| Interest & Finance |
(3,197) |
(1,973) |
|
| Pre-tax Operating Profit |
10,780 |
7,793 |
+38.3% |
| less tax |
(3,551) |
(2,626) |
|
| Net Profit |
7,229 |
5,167 |
+39.9% |
| EPS – cents (basic)* |
18.29 |
12.12 |
+50.9% |
| Dividend Per Share – cents (ordinary shares) |
10.00 |
10.00 |
|
| Franked Amount |
100% |
100% |
|
|
|
Directors
expect further earnings growth in 2004 but cautioned there was a need
for the company to vigilantly maintain its lean manufacturing policy
and low cost base to sustain its position and margins within Australia's
increasingly competitive automotive industry.
Executive Chairman, Max Hofmeister said both TMT and CMI Forge had been
fully integrated into the company’s Engineered and 4WD Components
division and were expected to contribute over $60 million p.a. to CMI’s
revenue base from fiscal 2004 on.
In May 2003 the company raised approximately $11 million through an
entitlement offer of new convertible preference shares to reduce bank
borrowings associated with the two acquisitions and fund future growth.
As a result of the capital raising CMI’s gearing ratio reduced
from 85.2% at 31 December 2002 to 63.3% by fiscal year end.
“TMT’s export sales of heavy transport wheels to the North
American market were impacted by an appreciating Australian dollar.
Since acquisition we’ve reduced the business’ cost structures
and expect benefits from these measures to accrue in the current financial
year,” he said.
Mr Hofmeister said the relocation during the year of CMI’s Campbellfield
automotive components plant to larger, state-of-the-art premises adjoining
Ford Australia’s Broadmeadows factory, had further strengthened
the company’s supply arrangements with Ford and tier one supplier
customers such as Dana and Autoliv.
“Based on early projections for another record output by the Australian
car industry in 2004, we’re expecting our auto-related revenue,
which includes our 4WD accessories business, to increase again this
year,” he said.
The company indicated it was also budgeting for higher revenue contributions
from its Electrical Components and US operations, with the latter to
benefit from the opening during the year of CMI’s second US distribution
centre in South Carolina.
*During the financial year ended 30 June 2003, the company issued
7,589,628 convertible preference shares. The calculation of basic earnings
per ordinary share requires the preference share dividend to be deducted
from operating profit after tax. On a fully diluted basis earnings per
share were 17.23 cents (2002: 11.36 cents).
Further Information
Please Contact:
Max Hofmeister/Warren Hill
CMI Limited
(07) 3004 8188
|
