Industrea expects healthy profit

MINING equipment provider Industrea has reported an adjusted net profit after tax of $A24.65 million ($US15.73 million) for the last six months of 2008, up 106% on the prior comparative period.

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Reported net profit in the half-yearly results so far is $3.7 million, but Industrea said the increase in adjusted net profit figures reflects improved financial results across the company’s businesses and the inclusion of trading results from the Huddy’s Mining Services business for the full period (two months trading in the prior comparative period).

Xstrata’s decision to shut down the Handlebar Hill mine in Queensland due to weak zinc prices also impacted Industrea’s results.

Of the reported $3.7 million in net profit, Industrea said it was inclusive of a non-cash impairment charge on customer contract intangible assets of $17.18 million.

“The impairment has arisen from the termination of the Handlebar Hill Open Cut contract, advised to the market on January 14, 2009 and, in consultation with the company’s auditors, is expected to be recognised in the first-half results,” Industrea said.

Industrea is expecting $42-47 million in adjusted net profit after tax for the current financial year.

Industrea is yet to issue full disclosure and commentary on the half-yearly results.

Shares in the company traded up this morning 1.1% to 9.2c.

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