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May 24, 2012 /PRNewswire/ -- Orbital provides a market update for FY2012 as follows:
As disclosed in
February 2012, Orbital's Consulting Services order book of
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.
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.
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.