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URL:  https://boards.fool.com/arp-business-as-usual-17710619.aspx

Subject:  ARP-business as usual. Date:  8/19/2002  11:55 PM
Author:  Barcoo Number:  4878 of 6186

The good news continues.


HOMEX - Melbourne


+++++++++++++++++++++++++
The Directors of ARB Corporation Limited are pleased to report that
the company had another successful year to the end of June 2002.


Net profit after tax was up 27.2% to $8.3 million for the year,
derived from revenues of $79.9 million (up 15.7% on the prior year)
and an operating profit of $11.7 million (up 19.8% on the prior
year). The average year to year net profit growth over the last five
years has been 27%.


The 2001/2002 results are summarised as follows:


YEAR TO JUNE 2002 JUNE 2001 CHANGE
$'000 $'000


Total Revenues 79,876 69,032 +15.7%
EBIT 12,022 10,184
Gross Interest 337 433
Pre-tax Op Profit 11,685 9,751 +19.8%
less Tax 3406 3,244
Net Profit 8,279 6,507 +27.2%


EPS - cents 65.6 57.2
DPS - cents 32.5 25 + 100
Franking 100% 100%


A final fully franked dividend of 20 cents per share has been
recommended and will be paid on 25 th October 2002 on registerable
transfers received by the company by close of business on the 11 th
October 2002. This brings the total dividend for the year to 32.5
cents fully franked.


The yearhas been a challenging one for ARB. The results are
especially pleasing in that they demonstrate a sound performance
despite adverse impacts. Business in the USA during the year was
clearly affected by the terrorist acts last September and their
consequences. Despite this, sales in the USA continued to grow for
the year although at a lesser rate than we would have otherwise
expected. Elsewhere sales grew well in both the Australian
aftermarket and to export customers.


This year was the first year for some time which did not include any
benefits from the Export Facilitation Scheme, an industry support
scheme. Despite the efforts of your directors, the company still has
not been accepted into ACIS, the new industry support scheme.


On the other hand, after tax profit benefited from the second step in
the reduction of corporate tax rates from 34% to 30%.


A new purpose built South Australian sales and distribution centre
was opened in Adelaide in October 2001 and this has provided the
basis for significant sales increases in South Australia. A property
was purchased in Canberra in December 2001 and after refurbishment
our ACT sales office moved into the new premises in May 2002. The new
facility provides much better operational conditions for staff and
customers. An agreement has been signed to develop a new Queensland
sales and distribution centre for $2.4 million. Preliminary approval
work is progressing and the building is expected to be completed
within this financial year.


Although production output has been at it highest in the last few
months, capacity has been strained and has been a limitation on
growth. Development of increased production capacity is ongoing but
abnormal fluctuations in demand have to be managed on a short-term
basis.


Liquidity in the shares of ARB has improved over the past year but
remains less than ideal. The directors have been advised that, based
on experience with other companies, a share split is likely to assist
liquidity in share trading. The directors are therefore proposing a 5
for 1 share split and a resolution to that effect with explanatory
information will be presented with the notice of meeting for the
Annual General Meeting this year.


THE YEAR AHEAD


Sales for the 2002/03 year have started well and we will again be
budgeting for solid sales and profit growth over the coming year. The
main factor likely to affect the company's performance this year will
be any change in general economic conditions, particularly in the
USA.


Over the next year the company will continue to develop new products
for our customers worldwide. We will also continue to develop our
established distribution system particularly in the major
metropolitan areas.


R Brown
CHAIRMAN OF DIRECTORS


regards
Barcoo
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