Business Description:
ARB Corporation Limited (ARP) manufactures, distributes and sells four-wheel drive vehicle accessories in Australia and internationally, as well as some light engineering works.

Strategy Analysis:
ARP innovates accessories for most new large 4WD models and also provides accessories for medium-sized 4WDs and utility trucks/pickups. Sustained research and development, expertise in product innovation, marketing, exporting and capture of production efficiencies are key to the strategy. ARP aims to grow sales domestically and in export markets. The domestic distribution network is growing with more ARB-branded stores and warehouses. To overcome skilled labour shortages in Australia ARP operates a second factory in Thailand. ARP aims to pass on to customers the costs of any A$ appreciation and increases in steel input prices. The company aims to capture production efficiencies. Organic growth is the main focus though there are occasional small acquisitions. ARB Corporation reported NPAT up 16% to $37.85m for the year ended 30 June 2011. Revenues from ordinary activities were $256.55m, up 11.4% from last year. Basic and Diluted EPS was 52.23 cents compared to 46.28 cents last year. Net operating cash flow was $39.34m compared to $38.76m last year. The final dividend declared was 13 cents, taking the full year dividend to 23 cents compared with 59.5 cents last year. The company's record 2010/11 result was achieved in the face of very difficult global market conditions. The current economic environment remains challenging. However, the outlook for the company is positive and the board is cautiously optimistic about the future. A first quarter trading update will be provided at the AGM in October 2011.