Page 23 - Bradken Annual Report 2013_Page flip

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YEAR IN REVIEW
Overall sales were down in 2013. It was a year
of two extremes for the Division with a vibrant
first half result impacted by a second half decline
in sales. The Division has responded quickly to
the reduction in demand by realigning workforce
levels and reducing fixed costs and discretionary
expenses to align with the current period of slower
economic activity.
The
Energy
business’ annual sales declined in
the first half but rebounded in the second half
of the financial year. The market remains highly
competitive with pressure on pricing of products
and services.
Annual sales in the
Industrial Product’s
business,
the largest portion of the Engineered Products
Division, were impacted by a softening of demand
in the mining and rail locomotive sectors, with sales
declining for the year compared to the previous
year. This reduced customer demand and excess
industry capacity will continue to create a very
competitive marketplace in the near term.
OUTLOOK
The Engineered Products Division is focused on
diversifying its North American and European
customer-base and expanding into new markets
such as commercial building structural applications,
oil sand wear parts and the dredge industry. This
will assist with full utilisation of facilities and provide
protection from cyclical impacts.
The recent decline in the mining and rail locomotive
markets, although significant at the present time,
will rebound in due course and the business will be
well-positioned to service the future needs of this
customer base.
BRADKEN LIMITED ANNUAL REPORT 2013 23
Non-destructive testing of a high-specification
Energy product.
Layout of a Mandrel Mill Housing for the Steel
Processing Industry.
Product dimension verification of an architectural node.