REPORTING SEASON: Bradken Ltd (BKN)
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Figure 1: Bradken Ltd 12 month chart
Bradken Limited (BKN), one of Australia’s largest manufacturers and suppliers of consumable product for the resources, energy and freight rail industries today released its half year 2014 numbers.
Bradken’s headline sales and divisional earnings were below market expectations as the company continued to feel the pain from the pullback in mining demand here in Australia and Asia.
Revenue/Sales from ordinary activities were $563.6 million a 17.2% slide year on year and below the $574.6 million expected by the market*.
The company said it was a good result in a challenging market and they were happy to see a small lift in new orders, even though it was off a low base.
A 14% fall in revenue in the resources sector was due to the mining slowdown.
BKN’s $86.2 million EBITDA for first half was slightly above guidance.
The result highlights strong cost control in light of Bradken’s 80% variable cost base.
Bradken’s borrowing costs were lower, helping limit the falls in Bradken’s operating cashflow only down 5.4%.
Bradken will pay out a $0.15 half year dividend to shareholders payable on the 21st of March 2014.
Bradken updated its FY14 EBITDA forecast now expect to be near $180 million which is broadly in line with Bradken’s FY13 numbers, but below current market consensus of $200 million.