09.11.2012

Bronto up 33%

Finnish truck mounted aerial lift manufacturer Bronto has reported a 33 percent increase in revenues for the nine months to the end of September.

Total revenues were $90.7 million, while operating income jumped 250 percent to $4.4 million. Order intake for the period is up marginally on last year at $112.3 million giving a backlog as of the end of September of $101.3 million.

Looking at the third quarter revenues improved almost 16 percent to $25.6 million, helping multiply the operating from just $200,000 last year to $1.9 million this year. Order intake for the quarter slipped back though dropping from $42 million last year to $34.7 million this year. The decrease is due to a decline in the average order size for fire-lift products from customers in Asia compared to the 2011.

Third quarter revenues were boosted by higher shipment to Asia, Australia and in Europe. The results would have been even better, had it not been for unfavourable currency impact of $3.2 million – Bronto is part of US based Federal Signal and thus reports in dollars.

The increased profitability is due to, production efficiencies, higher sales volumes and improved product mix.

Parent Federal Signal saw an 18.5 percent improvement in nine month revenues to $585.5 million, while pre-tax profits more than doubled to $19.1 million.

Vertikal Comment

Another strong result from Bronto which benefits from diversity in its markets, both geographical and end user – fire, utility and rental companies. So although it has a strongly focused product line and production, the three differently cycling industries provides excellent economic diversification.

With an order book strong enough to take it through most of the next 12 months the company looks set for a good year in 2012 with the prospect of an even stronger year in 2013.