Austin Engineering has lifted its annual net profit by 29 per cent and expects economic conditions to stabilise this financial year.
The company which provides engineering services to the mining oil and gas sectors posted a net profit $14.83 million for 2008-09, up from $11.54 million in the previous year.
Austin's revenue was up 69 per cent to $179.32 million due to a strong demand for the company's products and services.
Early this afternoon, Austin shares were up 17 cents or 7.83 per cent to $2.34.
The earnings result reflected a full year of revenue and profit contribution from Western Technology Services in the US, for the first time since its acquisition in November 2007.
Austin chairman Peter Fitch said today in a statement that the company had entered the new financial year with improved business conditions.
"Whilst the global economic disturbances led to a marked reduction in the level of activity by the major miners in the first calendar half of 2009, there are signs that business conditions are stabilising and improving," Mr Fitch said.
"The company's Queensland operations begin the 2009-10 financial year with a solid workload well into the 2010 calendar year, servicing the equipment requirements of miners in the Hunter Valley and Bowen Basin regions.
"Business conditions in WA are improving, with orders now being received for dump truck bodies for manufacture and delivery into the beginning of the 2010 calendar year."
Mr Fitch said industry miners and original equipment manufacturers remained cautious in North America.
However enquiry and tendering activities were showing signs of recovery.
Austin's full year earnings before interest and tax rose 27 per cent to $21.61 million.
Basic earnings per share also increased by 27 per cent to 31.4 cents per share.
The engineering company declared a final dividend of 6.5 cents per share, fully franked, taking the full year dividend to eight cents per share, up from 7.5 cents in the previous year.
AAP
