Revenue was down 11% year-on-year at James Equipment, Boom Logistics’ new and used crane sales division, falling from AUS$33.6m ($21.6m) to AUS$29.9m ($19.2m). Earnings before interest and taxes was down 65% to AUS$1.4m ($900,000).
At Boom Sherrin, the company’s access equipment division, revenue was down 6% to AUS$47.3m and earnings before interest and taxes was down 19% to AUS$9.6m.
This was part of an overall downturn in the results for Boom Logistics’ crane sales and service operations, which fell from AUS$4.3m to AUS$2.7m.
However, crane hire was “the standout performer” in the six months, with revenue up 24% from AUS$118.1m to AUS$146.3m, and earnings before interest and taxes climbing 63% to AUS$27.5m. Earlier this month, Boom Logistics announced restructuring plans for its Melbourne mobile crane operations, which reduced the fleet from 24 to 6 and reduced worker numbers by 31. This, it said, will improve the crane hire division’s results further by turning that business unit’s results from an annualised earnings before interest and taxes loss of AUS$1.6m to an AUS$600,000 profit.
Overall, the group’s revenue gained 11% on the AUS$202.4m posted in the first half of the 2008 fiscal year to AUS$223.7 this year. Net profit after tax was up 5% to AUS$13.8m
“Given where we were 12 months ago, having renegotiated debt and delivered a significant operational turnaround in our core business of crane hire, I believe we are well positioned for the uncertain times that lie ahead,” said CEO Brenden Mitchell.
“The board and I believe the Boom recovery is on track.”
