Engineering group Bradken’s has signalled it will continue to cut jobs and move production overseas, following a large drop in its full year net profit.
The Business Spectator reports that the group posted a net profit attributable to members of $21.5 million for the twelve months to June. This represented a 67.9 per cent decrease from the previous year’s figure of $66.9 million.
In addition, Bradken’s earnings per share fell to 12.4¢, from 39.1¢ a year ago, and the final dividend fell from 18¢ to 11¢.
According to the SMH, the company is in the process of shutting its highest cost facilities and cutting jobs. Over the last year, it has closed plants at Mittagong, Henderson and Muswellbrook, and reduced work at its Welshpool foundry. It has cut about 450 jobs in this time.
Bradken Managing Director Brian Hodges told securities analysts on Tuesday that the company has now completed just the first stage of this restructuring and there will be more cuts in the future.
The company has a metal forging works in the Chinese city of Xuzhou which has the capacity to double current production. And it is looking to invest in another low cost facility offshore.
''We've still got a lot of capacity at Xuzhou,'' Mr Hodges said. ''We will have a need for another low-cost activity in a different locale in two to three years.''