16.05.2010

Orders up at Bronto while sales fall

Finnish truck mounted aerial lift manufacturer, Bronto has reported a 52 percent jump in order intake during the first quarter compared to the same period last year.

Orders received totaled $31.7 million however revenues fell 24 percent to $24.8 million. The back log at the end of the quarter was $72.2 million compared to $128.4 million at this time last year.

The company achieved an operating income of $800,000 compared to $2.4 million for the first quarter of 2009. The quarter’s results were the result of softer order intake in the second and third quarters of last year as well as the effects of a port strike in Finland that affected component imports.

Bronto’s owner Federal Signal saw revenues fall by 10 percent to $166.6 million while it posted a pre-tax loss of $4.6 million compared to breaking even in the first quarter of 2009.

Chief executive William H. Osborne said: "Although we reported a slight loss in the quarter, there were several exciting developments for Federal Signal. We saw a 23 percent increase in new orders for our existing businesses, and these strong orders will drive revenue growth as we move beyond the first quarter. We saw increases in orders in each of our key customer segments - U.S. municipal and government orders were up nine percent, domestic industrial orders increased by 38 percent and orders from our international customers were 29 percent higher. We expect to see order growth for our existing businesses throughout 2010."

Vertikal Comment

This is the second quarter in a row that Bronto has posted an improvement in order intake, which bodes well for the year as a whole. This quarter will also have been affected by the record fourth quarter which was most likely driven by a combination of customers wishing to take delivery during the 2009 fiscal year a and Federal Signal’s need for the company to maximise its 2009 result.

Assuming business continues at current levels Bronto should have another good year in 2010.