Orbital says profit target hard to meet

Orbital Corporation Ltd says it is uncertain when motor giant Ford will launch a new
model using Orbital's next generation LPG system, making its forecast full year
profit difficult to achieve.
The company posted a $4.5 million net profit for 2009/10, a reversal of its $2.5
million net loss for the previous financial year, saying in August that it expected
a profitable 2010/11.
Orbital's revenue of $6.3 million in the 2009/10 financial year was underpinned by
sales of its current vaporiser LPG system to Ford for its E-Gas model, but Ford is
no longer making that model.
Orbital chairman Peter Day said Orbital had been working with Ford on the
development of the next-generation LPG system, which was due for release in the 2011
financial year.
"We have some delays such as the launch of the new Ford E-Gas model and other
factors such as the strong Australian dollar working against us," Mr Day told the
company's annual general meeting in Perth on Thursday.
"These uncertainties will make the targeted profit this year difficult to achieve,
he said.
"However, we have not lost sight of that objective and will be putting in every
effort to get across the line.
"Strategically, we are on the right track and global economic and environmental
drivers will support our confidence and the investments we are making today."
Mr Day said significant uncertainty surrounding the company's future had been
eliminated with the restructure of an interest-free $19 million loan provided by the
West Australian government in 1989 under a Development Incentives Agreement.
Mr Day said it had repaid about $4.7 million so far and had extended the repayment
deadline from 2014 to 2025.
"This restructure is very important for Orbital," he said.