The Managing Director of Bradken (ASX: BKN), Brian Hodges says that the financial crisis faced by the company was over.
The global manufacturing company headquartered in Australia reported a net profit of $ 70.4 million for the year up to 30 June 2010. The company expects earnings to grow at 15 to 20% for the year 2010-11.
Mr. Hodges said that they expected volumes to exceed pre-crisis levels for mining and strong improvements for industrial markets. He said that the rail business had recorded a very strong profit result on the back of good volume and significant cost reductions in the company's Chinese operation.
Chis Counihan, a Credit Suisse analyst also seems to share the MDs enthusiasm and said that the debt reduction by Bradken along with increased operating cashflows and a 5% increase in staff number over the period does illustrate that the business was recovering.
Goldman Sachs & Partners analyst Chris Savage said he was initially a "little surprised" by Bradken's guidance for 2011, but said the company was being conservative. The company boosted final dividend from 13c to 21c a share, fully franked and payable on September 13.