Austin Engineering Limited says it has received A$82 million ($61 million) of new orders across its business in the three months until end-February 2022, as orders for its specialist truck trays and buckets continue to come in.
This boost represents a 100% increase in its order book level compared with the same period of its last financial year.
Austin says it is now confident it has received sufficient orders to cover its 2022 financial year revenue guidance. In addition, Austin has also received a very encouraging level of orders for its 2023 financial year pipeline. Overall, enquiry levels and contract win rates remain strong in all home markets, it noted.
The order book improvement is across all of Austin’s home markets but dominated by the US, Chile and Indonesia.
Austin explained: “The truck tray business has remained strong but is now widespread across more jurisdictions and has been supported by a much stronger level sales of buckets and other equipment. Austin’s new JEC High performance bucket range has attracted considerable attention and, with four months to go in the current financial year, the company has already achieved a record level of sales of mine buckets compared to recent years.”
Austin has previously announced a series of measures aimed at improving its competitiveness by sharpening its focus on the needs of its customers, both in Australia and overseas. As an example, this approach has led to an update to its core Ultima truck trays to meet increased demands around safety and weight carrying capacity.
The design updates have been coupled with cost efficiencies from the advanced manufacturing approach and the hub-and-spoke build strategy, increasing Austin’s product quality and cost competitiveness in the market, it said. This action has already delivered a material level of new order wins, strengthening the current financial year order book, and driving momentum into the next financial year.
Austin is now rolling out the initial phase of its advanced manufacturing plan, following an intensive design phase, which aims to increase production efficiency, safety and quality, thereby reducing costs and increasing productivity. The company is now initially rolling out the new production system in Batam, Indonesia, because that facility is running at an elevated level of throughput in a trend that is expected to continue.
The company flagged in its first half 2022 financial year results that it was entering a challenging period in Western Australia, which is currently under Level 2 Government restrictions due to rising COVID-19 cases in the state. Potential risks, which to a limited extent are now being experienced, include loss of productivity due to staff shortages and shipping delays, which could impact scheduling and deliveries for Austin and its suppliers. The current level of restrictions is not anticipated to remain in place for long, with Western Australia’s COVID-19 caseload peak expected in the next few weeks. Contingency planning continues to reduce risks where possible.