GUD rides strong wave of vehicle sales in first half


Automotive segment keeps steady momentum up for bullish company

GUD rides strong wave of vehicle sales in first half
Graeme Whickman

 

Heavy vehicle component and parts firm GUD has kicked off the half-yearly reporting season with a rise in after-tax profits of $29.3 million, 3 per cent up on the previous first half.

The parent company of Ryco Filters, Narva and Disc Brakes Australia (DBA) saw its automotive products arm boost sales 18 per cent to $167.6 million.

GUD says Ryco is on target to achieve 400 customer "conquests" and release more than 300 new parts this financial year.

It marked the first half with a second quarter release of its universal diesel emission ‘catch can’ and sees the heavy duty segment continuing to grow.

Helping the group’s bottom line has been steady and consistent rises in registered road vehicles, last calendar year up 2.1 per cent to 18.6 million.

"I’m pleased to be able to report such a solid financial performance across the Group for my maiden results," new MD and CEO Graeme Whickman says.

"Credit for these numbers goes to the team with a record performance recorded from the Automotive segment.

"Automotive continued to show organic growth in the first half and the newly acquired Disc Brakes Australia business has performed ahead of our initial expectations."

"In the period, we have continued to invest in mid-term growth initiatives across the GUD Group.

"To support this, we have built up inventory in Brown and Watson [BWI, the segment that includes Narva] as the business gears up for the new catalogue launch in the second half of this year, a significant event for BWI which occurs every two to three years.

"We have also invested in people to support program introductions across the Automotive and Davey businesses.

"We anticipate these investments will help deliver improved results for the second half and into next year."


See how GUD performed last financial year, here


The growth was marked by a corresponding rise in expenses on almost every line, with logistics spending up about 20 per cent to $12.3 million and administration up a similar amount to $16.9 million.

A similar performance is forecast for the rest of the financial year.

"We’re excited by the opportunity to leverage the existing strong market positions of our Automotive businesses, and to find further complementary, value adding automotive acquisitions," a bullish Whickman says.

"We also see opportunities in the water business to gain scale through organic growth opportunities, and deliver a more sustainable future revenue and earnings growth over the medium term."

 

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