While the announcement on the matter last week did not specifically mention the safety issues which have impacted its CoalTram load haul dump vehicles since March, PPK said its mining business under performed.

PPK also blamed the half year results on a $2 million “one-off charge associated with the write off of research and development expenditures” plus costs associated with the closure of its Nowra facility.

The downturn in coal prices has impacted PPK which said a number of its customers put mines into care and maintenance.

“Where mines are operating, continued capital constraints for our customers meaning they are not purchasing or replacing capital equipment,” PPK said.

“Three separate capital sales of PPK equipment worth approximately $3 million, anticipated for this half, have recently been deferred.”

PPK chairman Robin Levison said its Australian customers experienced extremely difficult trading conditions.

“Absent the welcome sale of one Coaltram to a customer in China, PPK saw no capital sales in the half,” he said.

“That an excellent outcome from the sale of our Dandenong South property is completely offset by under performance in our mining equipment business is particularly disappointing. While it is difficult to pick the bottom of the market and resultant upswing, the poor economic and trading conditions in the Australian mining industry generally and the Australian underground coal mining industry in particular may continue into the second half of this decade.”

PPK, which is continuing to eye further sales of its property portfolio, is consequently planning to focus on expanding its parts and consumables sales plus to diversify with “particular emphasis” on its new China office.

The company has also forecast a net profit after tax of between $200,000-$600,000 for this financial year.