Bright outlook for Monadelphous

Sales revenue for the period was $562.7 million, up 22%, as a result of increased activity across its operations. Monadelphous managing director Rob Velletri said while the global financial crisis and falls in commodity prices had rapidly changed market conditions, with a number of customers deferring projects and cutting back expenditure, most of the company’s committed projects were proceeding as planned.Looking ahead, the company said customer confidence in long-term resources and energy demand remains with a number of core customers in bulk commodity markets, including iron ore and coal, continuing their development plans.Monadelphous said it was particularly encouraged by BHP Billiton’s recent announcement that it was committing to its Rapid Growth Project 5 in Western Australia’s Pilbara region. Industrial services company Thomas & Coffey reported a profit after tax for the first half of $4.7 million, up 49% on the previous corresponding period, while revenue jumped 69% to $211.4 million. The firm said that while a number of industrial clients were reporting reductions in volumes in the steel and aluminium industry, other industries including coal, defence and infrastructure would offer opportunities over the coming period. “There is considerable uncertainty in our markets which are changing very quickly, and further production cuts by our customers, increased competitive pressure on margins, potential deferment or cancellation of projects may have a significant impact on earnings,” Thomas & Coffey managing director Martin Whittaker said. “Despite this caution, we will keep the market informed but believe Thomas & Coffey is well placed to develop further its current market position in challenging economic conditions.”

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