Snorkel sales up - margins down
US based aerial lift manufacturer Snorkel substantial increased sales during the first six months of the year, but losses were also significantly higher.
revenues for the six months to the end of June were $88.55 million, up 23.5 percent on the same period last year, however, the higher sales generated a loss, before interest and depreciation of $7.7 million, compared to a loss of $2.2 million last year. The deeper losses were due to a sharp reduction in gross margins, thanks to supply chain and other issues, along with higher sales and administration costs.
sales increased 16.3 percent to $46.85 million, generating an operating loss of $4.3 million, compared to a $152,000 profit last year. The reasons for the loss were similar to that mentioned for the half year.
These basic numbers were revealed in the Tanfield half year results statement, the company retains a 49 percent stake in Snorkel and is currently in a legal battle with the majority owner Don Ahern. As a result, all but the revenues may be misleading. Ahern has no incentive at all to generate a short term profit and every reason to invest for the longer term while the legal process grinds on.