Business Description:
Austin Engineering Limited (ANG) is an engineering company with its core business in the mining and resources sector. The company has Australian manufacturing facilities in Brisbane, Perth, Mackay and Muswellbrook, overseas in the American state Wyoming through its subsidiary Western Technology Services (Westech) and Austin Ingenieros Chile Ltda located in the northern mining region of Antofagasta. In addition, joint-venture operations in the Middle East and South America also provide Austin Engineering with manufacturing facilities in Oman and Brazil.

Strategy Analysis:
ANG specialises in niche products like dump truck bodies and shovel heads. It uses internally developed robotic systems to improve manufacturing efficiencies. Organic growth is linked to the mining and commodities boom, particularly in Iron Ore and Coal where ANG has a large presence. Geographical diversification will focus on the North American market, through Westech, the Middle East with JV partners and strategic alliances style agreements preferred, and execute its South American expansion plans in Chile and Brazil. In 2010, improved efficiencies across the Australian operations during the year due to larger orders and higher capacity utilisation were key factors behind the increased level of profitability. Austin Engineering reported NPAT up 11% to $21.47m for the year ended 30 June 2011. Revenues from ordinary activities were $205.9m, up 43% from last year. Diluted EPS was 29.29 cents compared to 26.97 cents last year. Net operating cash flow was $43.72m compared to $13.28m last year. The final dividend declared was 8.5 cents, taking the full year dividend to 11.5 cents compared with 9.5 cents last year.