04.11.2010

Bronto slips 26%

Finnish based truck mounted lift manufacturer Bronto has reported third quarter revenues down 26 percent.

Revenues for the nine months to the end of September also fell 26 percent to €74.8 million, although order intake during the same period increased by almost seven percent to €72.7 million. Operating income for the period was €5.1 million compared to €9.5 million in the same period last year.

For the quarter revenues dropped to €20.3 million, while order intake fell just over 19 percent to €21.1 million and operating profits were cut from €2.3 million to €1.4 million.

Bronto’s owners Federal Signal says that the fall in revenues is due to lower European municipal and government spending, continued weakness in the fire-lift market and an unfavourable currency impact

The overall group reported flat revenues for the nine months of €547 million, while posting a pre-tax profit of just €400,000 compared to €10.9 million at the same point last year.

Vertikal Comment

Bronto has had a charmed recession so far with sales and order intake holding up while most other crane and access companies saw significant falls. The markets have now switched, with truck mounted lift manufacturers ‘feeling the pinch’ while self-propelled access equipment producers are seeing a pick up.
While public service cost cutting may well impact on the fire equipment sales in the USA and Europe, it should benefit from stronger business in Asia and from rising sales to the utility and wind power industries.

Bronto has been a champion at the top of the market and might suffer in the short term while the market absorbs the relatively large number of very big (90 metres plus) truck mounted lifts sold in the past two to three years, but will benefit as the market grows.

It is also a highly experienced insulated boom lift producer- a market that is not only on the rise, but which has strong prospects in the years ahead. One question still unanswered is will Federal Signal keep Bronto or sell it? Much may depend on whether it receives an attractive offer or not.