Sounds good to me ;-))10 Mar 2011 10:52
As of 28 February 2011, total sales for the first two months plus backlog for delivery in 2011 were US$17.2 million, some 35% higher than at the same date in 2010.
With the sale of its aviation business completed in January of this year, GTE sees sales strengthening in 2011/2012 across its core businesses - the Industrial Business Unit's auxiliary products and the Industrial Gas Turbine division's combustion products. Growth in these core activities is expected to more than offset the loss of revenues resulting from the sale of aviation and, as announced on 29 December 2010, the loss of the outage service team. Aftermarket repairs and upgrades are expected to continue to grow, and demand to build for the Ecomax energy saving technology, as the economy recovers and energy prices continue to rise.
With several new combustion upgrade products now launched, longer term service agreements recently signed with leading independent power producers in the US and GTE continuing to expand and diversify its market base, the Board is confident about prospects for sales growth in 2011.
Industrial Business Unit sales are expected to grow nearly 50%, from US$19.9 million to approximately US$30 million, driven by post-recession new unit recovery, higher oil and gas prices driving infrastructure investment, customer diversification initiatives, and a strong water-wash quote pipeline. The Industrial Business Unit has US$13.3 million of sales backlog in hand, approximately double the year-ago level, with more than 90% of 2011 revenue expected to come from long-standing accounts;
· Industrial Gas Turbine combustion product sales are expected to grow nearly 40%, from US$7.4 million to over US$10 million (of which US$2.6 million is already in backlog), driven by recently signed longer term repair agreements with leading US customers, newly launched product lines, distribution agreements with global third parties and Ecomax pilot launch programmes at key US customers. More than 75% of planned revenue is expected to come from existing combustion customers, with the other 25% from current Industrial Business Unit customers, as they expand their purchases into combustion products.
John Grant, Executive Chairman, commented: "After a challenging year in 2010, when we achieved only modest sales growth in a difficult market environment, we are much more confident about sales prospects for 2011. The significant investment made by GTE over recent years in developing new products is now starting to come to fruition, with strong sales momentum. Our projected sales growth, together with tight control of costs, should enable GTE to become EBITDA positive by 2012."
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