CAPRAL ON MEND The first tangible evidence of a turnaround at Capral, the much maligned aluminium extrusions manufacturer, emerged last week with the publication of profit guidance for the December half.
For the first time in more than five years Capral looks set to record an operating profit, with EBITDA tipped to be between $6 million and $7 million. This compares with an $8 million loss in the June half.
And analysts from Southern Cross Equities are expecting more improvement. Increased demand from the construction sector, which accounts for 60 per cent of Capral's sales, together with substantial cost savings extracted by the new managing director, Phil Jobe, and the imposition of dumping duties on a range of Chinese imports will all play a part.
According to Southern Cross, EBITDA could be as much as $35 million this calendar year.
CAA Price at posting:
33.5¢ Sentiment: None Disclosure: Not Held
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