RESULTS
Revenue for the industrial and safety division for the 2006/07 year increased to $1.2 billion following sales growth of 8.7 per cent in the second half.
Earnings before interest and tax of $114.6 million were 18.3 per cent higher than last year’s due to stronger performance from Blackwoods, Protector Alsafe and Blackwoods Paykels, the inclusion of Bullivants from January and net property income associated with capital management initiatives exceeding restructuring costs.
After taking into account the increased capital associated with Bullivants, the total working capital of the division continued to decrease with an overall reduction of 13.0 per cent, driven by strong inventory management. Return on capital was up three percentage points to 15.6 per cent.
Blackwoods had a better year, with sales and earnings growth aided by strong improvement in delivery performance and the winning of new contracts, particularly in Queensland and Western Australia. Trading performance in other states, despite improving in the second half, was dampened by lower automotive and construction activity.
Protector Alsafe’s sales and earnings were ahead of
last year’s with adverse pressure from ongoing commoditisation and a very competitive environment offset by efficiency gains and strong performance in customer service. Mullings Fasteners’ sales were in line with last year’s, but earnings were lower in a highly competitive environment. Motion Industries’ sales and earnings were below those recorded last year due largely to customer decisions to delay their shutdown maintenance.
The results for the New Zealand-based businesses were below last year’s despite improvements in all businesses in the second half. Blackwoods Paykels continued its turnaround with strong productivity improvements
lifting earnings. Packaging House sales were marginally ahead of last year’s, but earnings were slightly below
in a highly competitive environment. NZ Safety and Protector Safety managed to retain market share but earnings were disappointingly lower due to a vigorously contested contract environment.
During the year the division expanded its specialist
expertise, adding strong lifting and rigging product and service capability through the acquisition of Bullivants.
Bullivants’ sales and earnings performance were in line with projections and the business continued to grow. Progress of integration work and realisation of synergies were ahead of plan.
