Shares in serial under performer, Bradken (BKN) jumped 29% to $1.43 (a 13 month high) yesterday after it reaffirmed earnings guidance and revealed a restructure.
The company told the ASX yesterday that underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the six months to the end of June will be above the $51.9 million reported in the six months to the end of December, and full-year underlying EBITDA will come in around $108 million.
That’s above the current market full-year EBITDA estimate of $105.3 million.
Bradken also announced it would streamline its business, moving from five units to three and flagged the departure of three senior managers. CEO, Paul Zuckerman said in the ASX statement Bradken will now have three business units, down from five.
Mobile Plant, formerly called Mining and Transport, will deliver advanced engineered products to mining mobile plant, rail and industrial customers and will continue to be led by Brad Ward, Executive General Manager, Mobile Plant.
Mining Fixed Plant, comprising the former mineral processing and fixed plant businesses, will bring a full range of Bradken’s advanced engineering capabilities to its mining customers’ processing plants. Craig Lee is appointed as Acting Executive General Manager, Mining Fixed Plant, while a search process is conducted.
Engineered Products, based in North America, will focus on and deliver highly engineered and complex parts to our energy, defence and industrial customers. This business will continue to be led by Kevin McDermed as Executive General Manager, Engineered Products.
These business units will be supported by two new global support functions: Technology and Operational Excellence will focus on quality, innovation, productivity and procurement across all operations and be led by our Chief Technical Officer, John Saad. Supply Chain will focus on improving in-full, on-time delivery, demand forecasting, inventory management and plant utilisation. Andrew Allen has been appointed General Manager Supply Chain.
"The new structure brings management closer to customers in our core markets and creates opportunities to extract material gains from procurement, operations and supply chain improvements. Mr Zuckerman said, “The new structure will enable us to be more agile, more innovative and more competitive in responding to customer needs, all crucial for success in a competitive and globalised world.”
Net debt as at 30 June 2016, was approximately $350 million, down some $50 million from the same time last year.
