PERTH, Australia, May 24, 2012 /PRNewswire/ -- Orbital
provides a market update for FY2012 as follows:
Consulting Services
As disclosed in February 2012,
Orbital's Consulting Services order book of $1,190,000 at 31 January
2012 was lower than historical levels (30 June 2011 $3,870,000), and internal targets.
We are pleased to note that having secured an order of
approximately $4.7 million to supply
engines for use in unmanned aircraft systems (as disclosed in a
separate announcement dated 24 May
2012) the order book is now at target levels; however the
revenue from this order will not be recorded until FY2013.
Resources have been managed tightly and redeployed into
prospective research and development activities. As a result of the
above, revenue generated by the Orbital Consulting Services
business in the current half year will be significantly below
target and the 1st half, resulting in a negative segment result for
the 2nd half.
Alternative Fuels
The LPG market in Australia has
continued to be subdued with LPG conversions and Ford volumes at
lower levels than recent years. Orbital's aftermarket and OE
Alternative Fuels businesses have managed their operating costs and
despite the subdued markets are expected to generate a positive
result for the 2nd half and full year.
Synerject
As anticipated and disclosed in February
2012 Synerject sales in the 2nd half are lower than the
record 1st half and last year with contraction in the Taiwanese
scooter market not being fully offset by improvements in the marine
and recreational markets. Synerject continues to be
profitable and cash flow positive however the equity accounted
profit from Synerject will be lower than the 2nd half last
year.
Consolidated Result
As a result of the performance of the Consulting Services
business and lower contribution from Synerject, it is anticipated
that the consolidated loss in the 2nd half year and the full year
will be approximately $3 million.
Outlook FY2013
The Orbital Board is targeting a significant increase in revenue
and a return to profits in FY2013.
Capital management
In light of the reduced consulting services revenue in this
reporting period, and the anticipated increase in sales with
associated working capital requirements in FY2013, the Orbital
Board is reviewing capital management options.
About Orbital
Orbital is an international developer of innovative
technical solutions for a cleaner world. Orbital provides
innovation, design, product development and operational improvement
services to the world's producers, suppliers, regulators and end
users of engines and engine management systems for application in
motorcycles, marine and recreational vehicles, automobiles and
trucks. Orbital's principal operations in Perth, Western
Australia, provide a world class facility with capabilities
in design, manufacturing, development and testing of engines and
engine management systems. Headquartered in Perth, Western
Australia, Orbital stock is traded on the Australian Stock
Exchange (OEC) and the NYSE AMEX (OBT).
www.orbitalcorp.com.au
Forward Looking Statements
This release includes forward-looking statements
that involve risks and uncertainties. These forward-looking
statements are based upon management's expectations and beliefs
concerning future events. Forward-looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of the Company, that could cause
actual results to differ materially from such statements. Actual
results and events may differ significantly from those projected in
the forward-looking statements as a result of a number of factors
including, but not limited to, those detailed from time to time in
the Company's Form 20-F filings with the US Securities and Exchange
Commission. Orbital makes no undertaking to subsequently update or
revise the forward-looking statements made in this release to
reflect events or circumstances after the date of this
release.
SOURCE Orbital Corporation Limited