14.11.2010

Mills rental up 66%

Brazilian based engineering, rental and construction group is rapidly expanding its access and telehandler rental division.

The company has reported a 66 percent increase in the nine months revenues for the end of September for its equipment rental division, which is largely made up of powered access and telehandlers. Rental division revenues for the nine months were 64.3 million Real ($37.4 million), EBITDA for the period was 36.3 million Real ($21.1 million) an increase of 64 percent compared to the same period last year.

In the third quarter revenues grew even faster rising 77 percent to 25.8 million Real ($15 million), while EBITDA was 14.6 million Real ($8.5 million) – 85.6 percent up on the third quarter 2009.

Mills says that it has invested 105.7 million Real ($61.5 million) in its rental division during the first nine months, as a result of bringing forward its geographic expansion plans to cope with strong demand. The company has already opened the six new locations that it had planned for the full year and now expects to have 10 new depots during the 12 month of the calendar year.

Mills also says that it has signed contracts worth $80 million with suppliers of aerial work platforms and telescopic handlers for 2011. The orders are said to have been split between JLG and Genie.

The group as a whole saw nine month revenues rise 36.6 percent to 395.7 million Real ($230.3 million) while net earnings were 73.2 million Real ($42.6 million)

Mills was founded in 1952 as a scaffold and formwork supply company from 1974 to 1986 it was partly owned by GKN of the UK, it also formed a joint venture with JLG in 1997 to rent access equipment in Brazil. JLG’s holding was acquired by Sullair of Argentina in 2001 it then acquired the entire rental operation in 2003.

Mills re-entered the rental market two years ago in 2008, following a 20 million Real ($11.6 million) investment in the business by two private equity firms - Investidor Profissional Gestão de Recursos and Axxon Group.