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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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