Coal news and updates

WesTrac says coal customers hurting

Earthmoving company WesTrac says its coal customers are still hurting and looking for cost cuts due to lower prices and a high Australian dollar.

WesTrac, which is owned by Seven Group, has committed to cut more than 1000 jobs and spend $21 million on restructuring this year as the mining investment downturn hits machinery sales.

Seven Group chairman Kerry Stokes says WesTrac has experienced a challenging time, with the prices of gold, nickel and aluminium affecting customers dramatically and reducing activities and profits.

'Coal, while subdued, is still experiencing the same tonnage, but because of the price and the Australian dollar, our customers are hurting and looking for more efficiencies and lower costs,' Mr Stokes told the company's annual general meeting.

But he said iron ore in Western Australia was producing record tonnes of exports and continued to provide opportunities for WesTrac.

Chief executive Don Voelte said the Australian WesTrac businesses had reduced costs by more than $135 million on an annual basis.

'We are reducing costs, but we will still ensure delivering great service and quality to enable WesTrac to not only maintain, but grow our revenues and industry participation by offering our customers a better value-for-cost proposition,' Mr Voelte said.

Seven Group reiterated its previous guidance of full year 2014 earnings before interest and tax (EBIT) of between 30 to 40 per cent below full year 2013.

Source: www.skynews.com.au