Coates slightly down as Australian mining slows

Coates Hire in Australia posted a 4% decrease in its revenues for the year to 30 June following a softer final six months of the year, which saw a decline in mining related activity in the country particularly in NewSouth Wales.

The results released by Seven group holdings, which owns 45% of Coates along with other major shareholder Carlyle group, show that revenues were A$1241 million (€831 million), with EBIT profits (before interest and tax) down 15% at A$279.2 million (€187 million).

Don Voelte, the new managing director and CEO of Seven group, said; “Coates Hire delivered a positive first half result but was impacted by a softening in demand in the second half of the financial year due to softer demand. Coates Hire has responded by implementing a number of restructuring initiatives.”

Seven group is 100% owner of pump, power and lighting tower manufacturer Allight Sykes, where sales were down 26% to A$155.8 million (€104 million) for the year, again because of a slowdown in the mining sector. Mr Voelte said the business was engaged on “some major restructuring and property consolidation initiatives.”

At the Caterpillar dealership WesTrac, which Seven also owns, sales were up 16% at A$4.1 billion (€2.7 billion), with product sales up 20% - mainly due to sales in the first half of the financial year – as well as a 10% increase in product support revenues. The business benefitted from the integration of the former Bucyrus mining business acquired from Cat in July 2012.

In China, where WesTrac has Cat dealerships in north eastern China – including significant mining territories – sales were down 29%, reflecting the slowdown in China’s economy. Seven said it was contemplating the purchase of Cat’s Bucyrus EMP business for its China territories.