11.03.2014

Bronto edges up

Bronto, the Finnish based truck mounted lift producer has posted a 2.5 percent increase in revenues for 2013.

Total revenues were $138.4 million, while order intake during the 12 months declined by four percent to $130.8 million. Operating income was two percent higher than in 2012 at $9 million.

In the fourth quarter revenues declined 29 percent to $32.7 million due largely to the high comparative number for 2012, when the company shipped and invoiced a large number of delayed machines. Order intake for the quarter picked up, increasing over 25 percent, due to increases in Europe and the USA, offset a little by lower order intake from the Middle East. Operating income was affected by the lower volume falling from $4.5 million in 2012 to $1.6 million in 2013.

The company’s backlog/order book at the end of the year was $79.3 million, just over $4 million down on 2012.

Bronto is owned by US based Federal Signal, which reported revenues of $851.3 million for the year, six percent up on the year. Pre-tax profits more than doubled to $53 million.

Chief executive Dennis Martin said: “With this strong quarter, we continue to build on our improving results. Our Environmental Solutions Group drove our top-line growth and more than doubled its operating income from the fourth quarter a year ago. Our Safety and Security Systems Group boosted its operating margin to more than 15 percent for the first time since the fourth quarter of 2008, in spite of relatively flat sales for the quarter. The Fire Rescue Group (Bronto) had a soft quarter, primarily resulting from delayed deliveries of some units, but it still managed to turn in modest full-year improvement over the prior year.”

Vertikal Comment

Not a bad result from Bronto which has had an excellent run over the past few years. The company is now ‘neck and neck’ with Ruthmann in terms of annual revenues at the top of the truck mounted lift market with both companies reporting sales of truck mounted lifts at or around €100 million. Both companies have launched significant new models in the past year or so which will have an increasing impact in 2014.

Both companies also look set to benefit from a growing demand for larger truck mounted lifts, while Bronto derives a higher percentage of its sales from specialist markets such as fire and rescue and high voltage work. The specialist sectors should see some significant growth, particularly in developing market, Bronto should also benefit from its increased activity and geographic spread in the rental /industrial market. All of which ought to add up to a good year in 2014.