Page 27 - Bradken Annual Report 2013_Page flip

Basic HTML Version

YEAR IN REVIEW
The Mining Products Division stood out in 2013
with record profits and steady global growth.
Difficult market conditions were experienced
during the second half of the year that adversely
affected sales; however the growth in the first half
ensured substantial full year growth and gross
margin increase.
Crawler Systems
recorded record sales in 2013,
despite the global slowdown of the second half. The
impressive first half sales is testament to the quality
and performance of the Businesses undercarriage
components for shovels and excavators. Sales
growth was attributable to higher sales to OEM
customers as well as growth in direct aftermarket
sales in Australia and Europe. A reduction in new
mining equipment impacted the second half order
intake as OEMs struggled to win orders for new
equipment builds.
Fixed Plant
sales reduced as a result of the
second half market downturn. Many major Western
Australia iron ore projects were put on hold during
the year. The Business saw mine operators
destocking and implementing cost cutting
strategies which impacted the second half sales.
On a positive note, wear pipe sales to the Alberta
oil & gas region in Canada increased during 2013.
GET & Buckets
sales revenue increased
during 2013. Increased market penetration
and acceptance of Bradken’s first generation
ground engaging tools assisted the result. User
acceptance is increasing in Australia while new
overseas markets saw sales growth continue as
the sales force builds mine site relationships and
are better able to sell the value of our products.
Some second generation products were launched
in the second half of the year which we expect will
assist with 2014 growth.
OUTLOOK
The
Crawler Systems
Business now has extensive
manufacturing capability within the Xuzhou foundry
and efforts will be made throughout 2014 to achieve
targeted production efficiencies. The first half of 2014
is expected to remain slow as OEMs wait for mining
capital expenditure to increase. In 2014 the Business
will focus on supplying aftermarket parts directly to
customers worldwide. The maintenance of mine site
machinery will continue in line with production targets
and the expansion of our aftermarket capabilities will
be beneficial to sales.
Fixed Plant
will continue to focus on key markets
in 2014 with the release of new patented products
designed to reduce operating costs and improve
safety performance for the mine operators. Key
international markets will be targeted with a view
of establishing supply chains into these regions
which will provide a platform to introduce regional
manufacturing. Manufacturing will be concentrated
on lower cost operations including the plate
manufacturing facility in Xuzhou, China.
GET & Buckets
will continue its geographical
expansion of facilities, sales and technical staff
and its customer base in 2014. Further market
penetration will be sought in key global mining
regions as we increase our presence and gain
market acceptance. In 2014 the Business will be
focused on the continual release of next generation
products as we continue on our path of delivering
innovative and differentiated products to the market.
BRADKEN LIMITED ANNUAL REPORT 2013 27
Bradken EX1900 excavator bucket with Bradken Ground
Engaging Tools fitted.
Bradken lined 250T R.O.M. bin manufactured in
Xuzhou, China.