Mincon profits dip 3pc in face of industry downturn
Published 09/03/2016 | 07:57
Profits at Mincon, the Shannon-based engineering firm, dipped by 3pc last year in the face of a cyclical industry downturn.
The firm, which specialises in rock drilling tools, increased its revenue by 29pc over the course of 2015 up from €54.5m to €70.3m.
Sales of its own Mincon products rose 26pc over the course of the year while the sale of third party products jumped 37pc.
Mincon chief executive, Joe Purcell, said the firm delivered another strong performance last year.
"In this difficult environment we grew our revenue by 29pc and achieved an operating profit margin of 14pc. Overall we have improved our market position with demand for Mincon product increasing approximately 8pc on a like for like basis. The impact of acquisitions and foreign currency movements has also contributed to the increase in revenue in the year," Mr Purcell said.
Mr Purcell continued, praising the firm's robust business model.
"The exploration industry is cyclical in nature, driven by movements in the commodity prices of base and precious metals. Therefore our focus has always been on the production mining and other market sectors such as waterwell, geothermal and construction drilling, which are less cyclical and provide a more stable platform for the long term success and growth of the business. We are ambitious for further growth," he said.