ARB profit hampered by manufacturing costs

Company News

by David Chau

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Last Updated: 11/12/2019 2:28 PM

ARB Corporation Ltd (ASX:ARB), the manufacturer of 4WD accessories, has announced its after tax net profit rose 7.6% to $47.4 million.

The company says its profit was hampered by increases in product development and manufacturing costs. This was related to a large number of new products released by ARB over the year – such as new bull bars, fuel tanks, and shock absorbers.

The company’s sales revenue rose 8.2% to $356.9 million. Two-thirds of that was from Australian aftermarket, one-quarter from exports, and 7.8% from Original Equipment sales.

ARB declared a final dividend of 17 cents per share, fully franked (which up 1 cent from FY15). Its total dividend for the last financial year is 31.5 cents, which is an increase of 8.6%.

As for its outlook this financial year, the company says it will open 4 new ARB stores in Australia, and strengthen its distribution in the US, Central America and South America.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.