Manufacturer looks forward to stronger full-year performance
GUD Holdings’ transport and logistics developments have been instrumental in boosting its interim results.
GUD’s logistics technology subsidiary Dexion and its automotive products operation both helped net profit jump 16 per cent compared with the previous first half to $17.2 million.
The diverse manufacturer that also owns iconic consumer brand Sunbeam, reiterates that it expects earnings before interest and tax (EBIT) to rise to $55-$60 million from last year’s $49 million
It sees the half-year outcome as promising.
“It is encouraging that our previously identified underperforming businesses – Dexion and Sunbeam – made an improved contribution in this half,” managing director Jonathan Ling says.
Dexion’s underlying EBIT increased 499 per cent to $2 million, while the Automotive Products EBIT increased 5 per cent to $16.2 million.
“Whilst revenue remained relatively flat, due partially to delays in major project commencements, the operating performance benefited from the profit improvement plan and the relocation of the Kings Park rack manufacturing operation to the Malaysian factory,” the company says.
“Dexion’s order pipeline remains strong at $69 million.”
Kings Park was closed during the half and the focus is on optimising operational performance in Malaysia now that the relocated machinery is installed and commissioned.
The new roll forming line installed late in the last financial year, has begun full operation and the business holds a strong order bank for products from this plant.
Dexion Commercial reported strong profit growth due to “improved market conditions, the exit from the Elite Built business and the final closure of local manufacturing”.
The automotive business, comprising Ryco, Wesfil and Goss and focused on filtration, generated a record EBIT result of $16.2 million, with all brands contributing.
Revenue rose 6 per cent due to new product launches and market share gains. EBIT to sales margin remained solid at 32 per cent.
“We are pleased with the progress made in Sunbeam and Dexion, in particular, and we are on track to deliver on the profit uplift objectives we set out for these businesses,” Ling says, adding that Dexion “should deliver further improvements through both operational efficiencies as the plant in Malaysia is optimised and as we capture the revenue from the delayed racking projects”.