Earthmoving equipment firm Emeco has lifted full-year profit by 40.6 per cent to $69.7 million and announced a share buyback of up to 5 per cent of its issued capital.
Shares in the company were lower however on a clouded outlook given by the company for the year ahead.
The result was achieved on revenue of $565.2 million, up 12.5 per cent on the previous year.
Emeco will pay a final dividend of 3.5 cents a share fully franked, bringing total dividends for the year to six cents a share.
Managing director Keith Gordon said the company had continued to execute the strategy it detailed to the market in 2010 and were pleased to be delivering a third consecutive year of growth in both earnings and shareholder returns.
"Our consistent strategic focus since 2010 has provided a very strong framework for decision making across our operating businesses," he said.
"In line with this, $165 million was invested during the year in large mining equipment designated for production activity and this investment contributed solid returns and strong cashflows over the course of the year.
"A critical element of our strategy is to establish further market diversification and we have therefore committed $140 million in growth investment for FY13 to establish a quality mining fleet in Chile and to meet demand from customers in Indonesia."
The company said its existing businesses in Australia, Indonesia and Canada all delivered earnings growth over the year.
Net debt had increased by $94.9 million to $386.4 million over the year because of the fleet investment program.
However Emeco said it maintained a strong balance sheet which would allow it to initiate a share buyback of up to 5 per cent of its issued capital over the next 12 months.
The company said it expected mining volumes in Emeco's markets to grow in the coming year but noted a renewed focus on cutting operating costs in light of volatile commodity prices and recent global economic trends.
Emeco also advised some of its coal contracts in New South Wales and Queensland were set to conclude and it had not yet begun discussions on contract extensions.Shares in the company were off four cents, or 4.17 per cent, to 92 cents at 10.30am.
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