And shares in mining services and rail group Bradken Ltd finished up 3c yesterday at $6.24 after the company's AGM in Sydney was told earnings in the 2012 were on track.

The outlook to the meeting was word for word the same as Bradken released in its August full year profit statement, and released late last week after a roadshow to the US.

The company said "EBITDA (earnings before interest, tax, depreciation and amortisation) growth of 25% - 30% is expected in FY12 with NPAT growth in the range of 35% - 40% over FY11 adjusted results.

"FY13 will see further positive impacts on earnings as a result of the continued market expansion and major capex spend in FY11 and FY12."

In August, Bradken reported that EBITDA improved by 17% to $196.1 million on a sales increase of 14% in the year to June.

Net profit after tax and minorities (adjusted for material one-off items) for the year ended 30 June 2011 was $87.1 million, a 24% increase over the previous corresponding period.

Shareholders were again told the company expected "Mining markets to continue to expand in future years providing high margin organic growth.

"Lower GET (That's ground engaging tools) sales in FY12 will be offset by growth in other mining businesses and mining sales are expected to grow by approximately 10%.

"Rail Division sales will grow strongly and the impact of new business initiatives have commenced with 2,000 wagons expected to be produced in FY12.

"The Engineered Products Division will benefit from the capacity upgrades at Amite and Tacoma and enable it to continue its strong growth in the second half.

"The recent Norcast (Canada) and AOA (In Australia) acquisitions will provide synergy benefits and additional business growth opportunities in future years.

"EBITDA growth of 25% - 30% is expected in FY12 with NPAT growth in the range of 35% - 40% over FY11 adjusted results.

"FY13 will see further positive impacts on earnings as a result of the continued market expansion and major capex spend in FY11 and FY12."

Chairman Nick Greiner told the meeting that, "Despite current stock market volatility and foreign exchange fluctuations, the Board remains confident that the Company is well-positioned to take advantage of future growth and expansion opportunities".

In fact Bradken should benefit from the dollar improving some of its competitiveness here in Australia against imports and its revenue and profits from its offshore operations in China and North America, if the current value of the dollar around 96 USc persists for a period of time.

Copyright Australasian Investment Review.
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