Austin says mining demand validates capacity growth

ASX-listed Austin Engineering says strong demand for its new high-performance dump truck tray has bolstered its near-term sales outlook.

The manufacturer said budgeted FY23 revenue of circa-A$250 million (about 25% above FY22) was in hand in the form of contracts or orders, “with further loading expected during January and March 2023”.

“The higher revenue outlook is stronger than at the same position a year ago,” it said.

More than 210 truck tray orders in the past two months, including about 120 for its recently launched ultra-lightweight high-performance tray (HPT), had improved Austin’s order book and revenue outlook for the second half of the year, the company said. The surge represented about 40% of the 500 orders expected in FY23.

Austin said its four plants in Indonesia, Australia, Chile and the US would produce the trays, with the latter market “reporting its strongest workload position for a number of years” and the sales pipeline in Australia also filling into FY24.

“Austin expects the market interest in the HPT to continue due to its attractive design and operational benefits,” the company reported.

“Austin has received several proposals to tailor the design for different geographies, suggesting it will become a mainstay in the company’s global product portfolio, complementing Austin’s existing four truck tray types.”

Commissioned capacity growth, including a major upgrade in Indonesia, would allow Austin to meet the increased demand, it said.

CEO David Singleton said a higher win rate and product improvements such as the HPT were factors in Austin’s improving performance.

“We have also invested in upgraded equipment in the workshops to enable efficiency and quality improvements across our product lines,” he said.

Austin’s share price is up nearly 22% so far in 2023, capitalising the company at about A$213 million.


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