Emeco Holdings Limited (ASX: EHL) reported NPAT of $39 million for the six months ending December 2008, up 27.9 percent on the previous corresponding period. You expect NPAT to be in the range of $65 million to $72 million for the full year ending of June 2009. What assumptions underlie the second-half NPAT expectation? Which factors might push earnings to the top or bottom of the range?
MD Laurie Freedman
We achieved an average utilisation of 83 percent for the first half. In December, our utilisation rate reduced to 76 percent from a peak of 87 percent in August reflecting the volatility in the market. In January and February, the utilisation rate was slightly below the December utilisation level, but this level is influenced by the northern hemisphere winter which particularly affects Canada's utilisation. We've assumed a 70 percent utilisation level through the balance of the year when modelling our outlook, however we're currently tendering on a number of new opportunities, which if successful will provide upside to our assumptions.
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