Crane Group delivered on its June update for an 18% rise in earnings for the 2007-08 financial year.
And in doing so, it told the ASX that it expects improved profit again in 2009.
The 2008 result came on strong performances from its Pipelines and Tradelink businesses.
Revenue up 7.6% to $2.35 billion.
The company said earnings before interest and tax (EBIT) before significant items was $119.7 million for the year ended 30 June 2008, up 16.2% on last year.
EBIT before significant items for continuing businesses was up 15% on the previous year, driven by improved performances from Pipelines and Tradelink and the part-year contribution of acquired businesses.
Net profit after tax before significant items was up 18.2% to $63.8 million. Net significant item losses of $3.0 million for the period related primarily to restructuring and redundancy costs in the Trade Distribution business (That was announced in June).
Earnings per share (before significant items) of 98.6c were up 9.7% on an expanded capital base that includes the July 2007 share placement.
Crane Group Managing Director, Greg Sedgwick, said in a statement: “The strong result for the year was driven by good sales and margin growth in Pipelines and Tradelink. This more than offset challenging market conditions for CDNZ and Metals Distribution.
“Prudent cash flow and capital management have enabled us to grow through both acquisitions and investment in existing businesses, while maintaining gearing within our target range.”
“As announced to ASX on 17 June, 2008, Crane Group has combined its Tradelink and CDNZ businesses to form one trans-Tasman Trade Distribution business. This restructure is expected to lead to more efficient business processes, more effective product sourcing and lower operating costs for the combined business.”
The Crane Group Board has declared a fully franked final dividend of 36c per share, bringing total fully franked dividends for FY08 to 71c per share, up from 65c per share paid last year.
The company said the outlook for the water sector was "positive" and demand from the Australian mining sector was expected to be "solid", underpinning performance for the coming year.
"The outlook for the water infrastructure sector remains positive and solid demand is expected from the Australian mining sector. This will underpin performance for the coming year.
"Trade Distribution will continue the business improvement program that has delivered improved underlying results for Tradelink over the past three years and will derive benefits in FY09 from the cost reduction program underway in New Zealand.
"Given the relatively short period of trading in the year to date the company is not in a position to give a definitive profit forecast for FY09.
"However, Crane Group does expect to deliver an improved profit performance overall from its businesses in the coming year."
Crane said New Zealand’s economic conditions were expected to be the biggest challenge for the group this financial year.
The country’s Reserve Bank has already cut interest rates to 8% and will probably cut again as the economy drifts into what seems almost certain recession.
