Bradken (ASX: BKN), an Australian mining equipment supplier, saw its shares rise to $8.64 (+4.73%ý) last week after it announced that it had made some acquisitions that would raise earnings by $28 million.
The two acquisitions have cost Bradken $222 million. The Canadian company Norcast cost $202 million and the Wollongong operation, Australian and Overseas Alloys cost them $20 million.
Managing Director of Bradken Brian Hodges said that the acquisitions were in line with Bradken's strategy of globalizing its consumable products businesses and building a substantial presence in the world's major mining regions. Norcast provides world class manufacturing operations in Canada and a leading position in the global supply of Mill Liners. Australian and Overseas Alloys will increase their presence in the Australian wear plate market and provides strong manufacturing technology.
Bradken provides mining, engineering and rail products and had posted a $ 26 million net profit in the second half of 2010. The current acquisitions will strengthen and increase its market share in Australasia, North and South America and Africa.
Mr Hodges expected underlying pre-tax earnings growth for the financial year 2010-11 to be towards the middle of an earlier guidance range of 15 to 20 per cent, with 25 to 30 per cent in the financial year 2011-12 and net profit growth of 35 to 40 per cent.