Bradken Limited Annual Report 2015 - page 24

The Mining & Transport Division designs, manufactures
and supplies consumable wear products for all types of
earthmoving equipment to the global mining industry. The
Division’s products include Ground Engaging Tools (GET)
and associated wear parts, dragline rigging packages and
a range of buckets for dragline, front-end loader, face shovel
and hydraulic excavator equipment as well as crawler system
products for hydraulic mining excavators and electric rope
The Division also provides industrial cast products for general
industry and mining OEMs and designs, manufactures and
sells freight rollingstock products and services including
freight wagons and bogies and associated spare and
renewed parts and maintenance.
The Division’s customers include mine operators, OEMs and
mining contractors in the world’s major mining markets, along
with freight rail operators in targeted overseas markets.
Year in Review
The Division experienced difficult market conditions
throughout FY15 with total sales down 27% as mining
operators continued responding to lower commodity prices
by significantly reducing capital expenditure and deferring
maintenance programs to lower operating costs.
A significant drop in demand for new mining class excavators
lead to reduced demand from OEM customers and an overall
sales reduction of 31% for crawler systems products for
the year. While OEM sales reduced by 88%, the business
strategy to focus on direct aftermarket sales for certain
product platforms continues to yield strong results with
those sales increasing by 47% despite the tough market
conditions. These direct aftermarket sales will protect the
business from the capital goods cycle going forward and is
in line with the proven Bradken business model of selling and
servicing end users directly. The Division also continues to
benefit from increased utilisation of the high quality, low cost
manufacturing capacity at Bradken’s Xuzhou, China foundry.
Sales revenue for GET and associated products reduced by
2%, reflecting market share increases for consumables in
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