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Level & 144 (doctor Straet Bridgene Q80 4000 Australia
Prestat Addressa GPC Ecol 1370 Briefsene Qui 4001, Australia
Temporame (014-2224-0214 Flassender, 022 3228-531)

ASX ON-LINE

TO:	The Manager, Company Announcements
COMPANY:	ASX
$\mathbf{D} \mathbf{A} \mathbf{T} \mathbf{E}$ :	5 ^th March 2003
FROM:	John Vogler
NUMBER OF PAGES: (Including this Page)	5
毅動性	Announcement to the Market

Please find enclosed our PDF file of our CMI Newsletter which is being dispatached to our shareholders today.

J W Vogler Secretary

$\bullet$ -PRECERT ENGINEERD, GEOMOTAL AND END CONFORTS

CMI on track for strong full year earnings

Profit up 24% hat bill

A strong first half trading performance across all areas of CMI's business operations has set a platform for sustained full year earnings growth in 2003.

The company's alse tax profit for the cix months to 31 December 2002 increased 23% to \$2.594.080 on the back of strong worke glowth of 25% to \$79,554.544.

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Following the excellent result, which goes increased business leasts for both CMfh Australish and US oppretions. directors have cassicosts an interim duriend is 5. cents per share luly fretwee for ordency. shereholders. Poyable on 30 May 2003. record doeing date for the dividend

Regults Surrowy ening 'ingi Ferizoni TÉHELEM. 63.577,199 塞奉 Buickets before Depreciation Ancelisation Interest & Ste e lei das 5,062,091 26.3 Osposofskog and Amerikaans Q.()14,458) $(1.922, 775)$ 82.个 Famings before interest used Tax Ssi3.487 4446236 29个 Interest and Finance Charges. (1,419,272) \$918,2005 54 n Craneling Profit League The 3,757,209. \$120,000. $\hat{\mathcal{U}}^q_0$ , $\hat{\mathcal{U}}^q_0$ discussion will change t (1,203,149) 14.026.613) 総举 Creasing Folk After The 2364.000 2.100.008 $25 - 4$

psyment is 19 May 2003. Dredons also declared a quarterly fully framed preference. atiana cáddend at 3.125 sents to be paíd on 3 March 2003

Your directors zomain releatilized the constany's overrising objective of maximising the income returns to both categories of our shareholders.

CMINEVAS

First half berights

Among the numerous operational nguights achieved by CM over the past six ovadie was:

eril fo monomedia establista A. le company's supply astorgentents with the Augtralian automotive service, typited by GM's involvement with the new model Feloce and its participation with Recents busyeening export program.
· The sidelibri of two regor synergiation Lucinesses to CM/s existing operations. following the acquisition of Topwoonshe Mete Teststologies (DVD) and National Forge (see article this issue). These

то поли результата словных так падеевится телеса ДБА; в менгологических рассмотнику

foot-onlineersees forther strengthen the resigningly capability as a opecialist supplier to Australia's automotive industry and infer CMI access to naw hosphered Vosser oil as the statestern and water reflectation sectors:

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• The successful kararound of the campany's 4V/D components division. with TUM making an interceled. colempution to first that earnings.
· An equally popitive contribution from the Electric Composers's division which is now deally showing the benefits of the rationalisation program completed in tho last ärssnotal yeve;
* The company's relocation of frie cresious Campballield plant to a significantly larger, word-class production facility which adjoins Fords Broadmackw manufacturing confron
.
• Be asseapment of a second US . dentication service in South Carolina to gence the congery's expensing analgement with Pacifica subsidisty PBR: and
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The bolstering of our servor management resources vain the appointment of a new Oriol Operáting Classer, Weinen Hill, and a hew head of Corporate Finance, Geoff Luxisek,

◎鰊料の公分

Dont Reduction whater

Whoe CMB assessed tracksg performance in the first har reached in a 36% aims in EBITDA to \$8,127,943, this was offert by scription the righer from that owhering costs as a result of the two recent acquastions. Interest and financecharges were up more than a ttail own the prior corresponding gened to \$1,416,278. The recent accalestions, together with the curlectensitie chaestinent made in racerit years to apgrade the company's manufacturing technology, resulted in first half despreciation and amortisetion chairnes. aso increasing by over 50% to \$2,914,456.

Directors are committed to returning OM's gearing ratio to more acceptable. levels in the second half. In the with this ciosi. CMI is citatración parcadion a crospectus for shareholders and for a captal raising of around \$11 million to standa the adaptation-industed bank. conceverge and turnt further upgrades to manulacturing factinology.

Creation expect to todge a progrectus within the next week and chareholders will invasive turtinor information on this capital. release shorts, White it is not possible for logal reasons fo provide specific defaits at this stage of the proposed issue, dreators are confident that investo on CMI's resolter. forward dutique that it will provide a further werke for shareholders to economicate. Inserved outlette form the commence. continued progress in the years singed.

Buoyant Calbek

Cannot traditor sold forward converse on point to OM's second helt being evenshoreon than the first, with full year. exclude these is the scheme of the continent $\omega$ is a precise templor.

Significantly, our second half results will reflect the first firms contribution of a full rix. monite trading from BMT and National Forge. These businesses currently twice an annualised revenue base of over 960 million. and series memoranted hoge chapter identified apportunities to expend the seles reacts of tividi consentings. Other factors which are expected to posthesy impact on CMP's socional helf performance includes

· Fransky predictions of another bussets year for Australia's automotive sector, with the Factars' Chamber of Automotive industries creditding rear record annual cales volumes in 2003;
. A continuation of the strong supply arrasspecterus custosfaula place. with Dens, Holden, Austria and célisés és ediprovator.
· An enhanced production and serves capablity for these customers through

CONSTRUCTION AND CONTROLLERS

OMB new world-class manufacturing facility at Compbellifield; and

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contending (3) sales control index. frrough the company's second distribution centre in South Carolina.

CAS has never been petter placed to confective model sense contracts particularly its ever strongthening. retailoned ide with Australian's can reasons end. their tier one suppliers. According the company is confident of sussaining growth. in the Premediate years alread, and is cleary on track to break the \$200 makers research banket in the 2000/2006 financial year.

Based of expectations for this feteredel very. Orectors are comfident of at the very least matching last year's dividend for crotitary shareholders, and of meeting its scheduled. distribution of 12.6 cents fully frequent to convertible preference shareholders.

CMINEWS

CMI Acquires National Forge

in a further important progression of CMP's excansion strategy in December 2000 the company acquired the automotive business of Nationsi Forge Limited from receivers Pricewatterhaust Connect

inis ignest sexpectors, which has been integrated as part of the group's Victorianbased automotive correpondents fousiness. and renamed CMI Forge, closely lollows the ourchase of the \$63 million p.a. business. Service company Material Standard Services

Sprikarshy ky our sitererstidens, forthaccusations were regalises valls fractoally clichteneziach unanzienen, word tines existent stabel fearthe responsive businesses represent what the board considers to be outstanding value. Combined with the provinc crowfit OME is currently experiencing, this two latest additiona to our business stable are expected to push arm at organ energy past the \$300 milkor mark for the first time. in the 2003/2004 financial year.

The integration of OM Forge into our covations, halbes strenglems the quantity al-important machining capability and the connectitiveness of our connecters after to Australia's automotive soctor.

The business was previously free largest rablely listed foraing company in Australia. OGN.ON tews examing of yheaps a film tomas of ferrous and representes. expressioner the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of years the exampany has successfully built a

strong position within Australia's automotive painter and designs and a minder of overseas export markets.

Significantly, CMI Forge has developed a carána experiso ni postupin nominatoris. som skæmmere and megnassum aloya to acconmodate the increasing trend by car makes to incorporate font weight, fuel efficient and recyclable materials.

The business currently employs around 200 passete at two Melbourne TERNISCUSTO CAVARA SI STI SUCCESS S ways of skeaing components, engine concretionarity and drive frain commonwarity for water automotive customers that include Dana and lon. The business also manufacturers premium custiky oblicado hasets which are exported to golf clubпевъездавето был ре Сойомау

An immediate priority as part of a foreger term sales and profit reaximization strategy for CM: Forge, is to poost productivity and other through intraducing the sees menutacturing prilosophy in place at the group's other automotive mendecturing operations.

May, Hofroelster -
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