Business Description:
Industrea Limited (IDL) is a global provider of specialist mining products and services, with a focus on improving customers’ open cut and underground mining productivity and safety. IDL’s products and services are sold in Australia, China, USA, South America, South Africa, Indonesia, Russia and Japan. IDL has offices in Australia, Chile, and China, with operations conducted through 4 business divisions: mining equipment, mining technology, gas management and mining services.

Strategy Analysis:
IDL is committed to growth in both domestic and international markets through continued strategic acquisitions, generic growth, international marketing and economies of scale. The company pursues its growth strategy via a numbers of initiatives such as realignment of existing structures to the business unit model; aligning the cost structure and top line revenue; acquisitions of businesses that are profitable and synergistic; integration of the latest acquisitions onto a single operational and financial platform; streamlining operational and customer service processes including self-help tutorials and automation. A continuing focus on signing contracts such that revenues are related to volumes of quantity mined and not price will reduce exposure to fluctuating commodity prices. Industrea reported NPAT down 17% to $47.93m for the year ended 30 June 2011. Revenues from ordinary activities were $357.05m, up 14% from last year. Diluted EPS was 13.69 cents compared to 17.02 cents last year. Net operating cash flow was $91.99m compared to $64.78m last year. The final dividend declared was 3.0 cents, taking the full year dividend to 4.0 cents compared with 3.9 cents last year.