New design dry-bulk tanker and boost from rail arm give financial traction
Intermodal engineering, tanker trailer, and personnel group Engenco has seen its annual profit more than double, even as revenues dipped slightly.
Net profits for the firm that owns Convair dry-bulk tankers rose from $3.8 million to $8.35 million, while revenues took a slight hit from $132.8 million to $129.3 million.
The group notes Convair faced very tough market conditions in the early part of the financial year, “but as the construction market in particular began to recover, demand for its tankers increased.
Investment in a new Convair tanker “was also met with enthusiasm by the market”.
“Convair’s new, unique design steel tanker has many appealing benefits to customers and is manufactured using advanced and more efficient manufacturing processes – leading to a more satisfactory outcome for the year and a good order book going into the new year,” Engenco MD and CEO Kevin Pallas says.
Convair’s revenues were up slightly from $13.2 million to $13.5 million but gross earning nearly doubles from $694,000 to $1.16 million.
Highlights from other divisions include rail equipment firm Gemco, which saw gross earnings more than doubling from $5.26 million to $11.38 million on revenues up from $45.5 million to $51.3 million.
“The on-going introduction of modern technologies and equipment, coupled with hands-on management and a team comprising some of the best skills in the industry, has placed Gemco favourably in the market, especially with the larger rail operators who are increasingly seeking maintenance outsourcing opportunities.
“The higher volume of work executed in all our facilities – particularly in our heavy maintenance Forrestfield and Dynon sites – has led to greater utilisation rates.
“We have met the increase in activity with further productivity and capacity enhancing investments in plant and equipment, some of which are yet to be brought on-line but from which we expect to see further benefits in the new financial year.
“Our strategy to forge closer ties with global high-quality rail products manufacturers has helped grow the Product Sales business stream and further position the business favourably with major rail operators including the large miners.”