Austin has manufacturing facilities in Australia, Indonesia and South America. The Australian facilities make, assemble, repair and maintain (on and off-site) products used in the mining and resources sector, with the main product lines including customised dump truck bodies, water tanks, excavator buckets and materials handling equipment.
Record or near record oil and gold prices suggest the commodities cycle is still far from running out of steam, which means the old adage of looking at stocks that supply shovels to miners remains an attractive way of playing the resources sector.
First half earnings slightly exceeded forecasts. Morgans observes tender activity is at record levels and supports the revenue and margin growth that is incorporated into forecasts. The broker remains cautious about the trajectory, nonetheless, given the lumpiness of activity in some geographies and flat pricing.