16.03.2013

Profit boost at Bronto

Finnish truck mounted lift manufacturer Bronto Skylift has reported a strong improvement in revenues and operating profits for 2012.

The company is owned by US based group Federal Signal, so results are published in dollars. Bronto revenues for the full year totalled $135.1 million, up 23.5 percent on 2011. Operating profits were $8.9 million 35 percent higher on the year.

Order intake for the year was flat at $136.5 million, leaving the company with a backlog at the end of December up 4.5 percent to $83.6 million. Looking at the fourth quarter, revenues improved 7.3 percent to $44.4 million, with an operating income of $4.5 million - nine percent higher than in 2011. Order intake for the quarter slipped 16 percent to $44.4 million.

Group results for Federal Signal showed revenues jumping 16.5 percent to $803.2 million for the year, with a pre-tax profit of $25.9 million, 56 percent higher than in 2011.

Chief executive Dennis Martin said: "Our fourth quarter performance demonstrated our commitment to disciplined growth, delivering 12 percent revenue and operating income growth. Working capital management improved significantly during the quarter and the year, as we generated $49 million in operating cash flow during the year, an over three-fold improvement from 2011."

"We accomplished a number of critical objectives in 2012 and early 2013 that will position the company for improved earnings through reduced interest expense and the benefits of our 80/20 initiatives. All of our segments increased operating margins during the full fiscal year. Despite the uncertain outlook in some of our markets, our backlog remains healthy at $318 million, positioning us to make continued gains toward approaching our stated operating margin goals."

Vertikal Comment

Bronto continues to do exceptionally well thanks to a strong combination of
fire platform and industrial sales. The market for larger truck mounted lifts continues to grow, helped along by strong product innovation in the sector in which Bronto participated.

The company has further new models planned for this year and is likely to have another good year, in spite of increased competition from German and now Italian manufacturers.