Boom logistics has turned a $37.7 million loss into a $19.7 million profit
August 16, 2012
Boom Logistics has announced a $19.7 million profit for the full year ending June 2012, after a net loss of $37.7 million for the 2011 financial year.
In a statement to the Australian Securities Exchange this week, Boom, Australia’s leading crane logistics company, reported an earnings before interest expense and tax of $37.2 million for the financial year, compared to a loss of $30.4 million for the year before.
Boom Chief Executive Brenden Mitchell says the turnaround could be credited to a three-year strategy, which includes selling non-core business, reshaping the fleet, restructuring metropolitan businesses, and winning new contracts in the mining sector.
“Boom achieved an impressive turnaround in financial year 2012 and the strong improvement in our core operations provides the company with significant momentum heading into financial year 2013,” Mitchell says.
“In particular, the full year benefit of the BHP Billiton Olympic Dam (pictured) contract, Boom Sherrins’ restructured business and our investment in the fleet give us confidence in our outlook for the current financial year.”
Boom’s
crane logistics business achieved 8 percent revenue growth for the financial year.
Boom says this was achieved despite difficult conditions through the year, including lower activity in the Bowen Basin and the continuing effect of past weather events.
Boom attributes the performance to continuing growth in the mining and resources sector, which contributes 62 percent of total crane revenue.
Boom also invested $58 million in capital and restructured its operations at a cost of 1.2 million in 2011.
The restructure included the closure of six Boom Sherrin depots, with assets redeployed to more fruitful areas of the business.
“The benefits of the restructure were evident in the second half of financial year 2012, with earnings before expense and tax growing 17 percent compared with the prior corresponding period,” a Boom statement says.
Boom expects to invest $60 million to further strengthen the company. The company has also announced plans to continue restructuring, with the goal of delivering a trading result of more than $47 million.