Confident Bradken Ups Dividend,

  Shares in metal basher, Bradken Ltd jumped by more than 11% yesterday after the company boosted interim dividend 30% and told the market it saw better times ahead.The shares rose 68 cents to & #36;6.53, despite the company reporting a & #160;26.4% fall in & #160;first half profit.The company revealed in the profit announcement & #160;that the dividend was being lifted 30% to 13c a share, and that the & #160;dividend reinvestment plan remained active, but without a discount.The mining and engineered products provider said & #160;net profit of & #36;25.72 million for the six months ended December 31, was down from & #36;34.93 million in the prior corresponding period.Sales revenue totalled & #36;465.8 million, down 25%. & quot;While the Rail business reported strong trading conditions in the half, with revenue up 21%, the Global Financial Crisis impacted significantly on revenue of the rest of the businesses particularly Engineered Products in the USA, & quot; directors said. & quot;Strengthening of the Australian dollar reduced the A & #36; equivalent sales of the offshore operations by approximately & #36;23m. & quot;EBITDA of & #36;70.7m was achieved, & #36;20m or 22% lower than the corresponding period. & quot;Net profit after tax attributable to ordinary equity holders (NPAT) of & #36;25.7m was & #36;9.2m or 26% below the corresponding period, resulting in earnings per share of 19.8 cents for HY10 (based on number of shares at 31 December 2009). & quot;Despite the tough trading conditions, a tight focus on reducing costs in line with demand levels has allowed gross margins to increase in all businesses and the EBITDA to sales ratio to increase to 15.3% from 14.7% in HY09. & quot;Management responded to the situation and was able to expand gross margins by reducing variable costs in line with activity levels and by achieving the benefits from previous capital expenditure. & quot;This combined with reduced overhead spend allowed the EBITDA to sales ratio to improve to 15.3% from 14.7% in HY09. & quot;A notable feature of the half year's result is the strong cash performance which has allowed us to significantly reduce debt and provide balance sheet flexibility going forward. The Australian debt facilities were refinanced in December 2009, providing funding stability for this business for a further three years. & quot;Bradken managing director, Brian Hodges said the first half result reflected the & quot;bottom of the cycle & quot; after the global financial crisis caused a significant drop in trading levels, particularly at the company's overseas operations. & quot;Our continued focus on maintaining earnings quality and cash generation is positioning Bradken well to take advantage of recovery in the global market, & quot; Mr Hodges said in the statement. & quot;Our expectations are that we will see improving trading conditions in the second half. & quot;Mr Hodges said that, while the Australian mining industry was expected to be strong, the offshore business & quot;will not reach the growth rates previously expected in this period & quot;.He said the rail business was expected to be & quot;particularly strong & quot; in 2009-10, with orders already in place to make forecast sales at margins above those of 2008-09.The company maintained its earnings guidance from last year's annual general meeting, when it said earnings before interest, tax, depreciation and amortisation for 2009-10 was expected to be about & #36;10 million lower than in 2008-09. & quot;We reiterate our guidance given at the AGM in October 2009, which was FY10 EBITDA slightly down on FY09, & quot; Mr Hodges said.Bradken said it expects to hire more staff in the second half of 2009-10.  

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