Austin Engineering Limited has confirmed a significant surge in global purchase orders, bolstering its order book for the current and upcoming financial years.
The company’s strategic initiatives have resulted in the awarding of substantial contracts, marking a crucial moment in its growth trajectory, as revealed in an ASX announcement.
In Chile, Austin Engineering has secured the first tranche of purchase orders valued at approximately $7 million for OEM-style truck trays.
These trays are slated for delivery within the remainder of the fiscal year, marking the commencement of a potentially nine-year program.
This program, which initially involved the award of a test tray earlier in February 2024, is expected to generate a series of ongoing orders across multiple jurisdictions where Austin operates, with manufacturing set to take place in Chile and Indonesia.
The purchase orders in Chile are reported to be integral to the “first fit” of trays for a global truck OEM, reflecting Austin’s commitment to providing innovative and reliable solutions to its clients.
The company will leverage its bulk procurement program, AustBuy, to source the required steel, expanding its supply chain capabilities to include Chile alongside Australia and Indonesia.
Meanwhile, in the USA, Austin Engineering has inked an extension for up to five years for its largest ongoing single supply arrangement for truck trays.
This extension, which includes three years upfront with two one-year extension options, underscores Austin’s track record of innovation and dependable supply.
Initial purchase orders have been issued, with deliveries slated to begin in the current fiscal year and continue into FY25, potentially amounting to approximately $20 million per annum.
In Indonesia, Austin has commenced delivery of refurbished haul truck chassis frames as part of a multi-year production program.
The company anticipates a gradual increase in production volume over time, with initial purchase orders placed for new matching truck trays for the refurbished truck fleet.
While the purchase orders for chassis frames and truck trays in Indonesia are valued at approximately $3 million, they are expected to contribute more significantly from FY25 as the program gains momentum.
David Singleton, CEO and managing director of Austin Engineering, emphasised the importance of developing long-term partnerships with high-quality customers. He expressed satisfaction with the new long-term programs and the extension of existing agreements, highlighting their positive impact across all business segments.
Despite the ongoing challenges, Austin Engineering maintains its Full Year FY24 guidance provided at the Half Year Result, anticipating revenue growth of circa 24 per cent to $310 million – $330 million and NPAT to increase by circa 75 per cent to $31 million – $33 million.
