07.05.2014

Mills Rental up 28%

The Rental division of Brazilian rental group and scaffold contractor Mills, has posted a solid first quarter.

Total revenues in the Rental division, which is made up of aerial lifts and telehandlers, climbed 27.8 percent from the same quarter last year to R97.3 million ($43.6 million), while operating income increased 28 percent to R39.7 million ($17.8 million). This follows a further R73.7 million ($33 million) of capital investment in the quarter – the same level as in the first quarter of 2013. The company says that utilisation during the quarter suffered due to the late arrival of new equipment, preventing it from making a full contribution during the period.

The group as a whole reported a 10 percent increase in revenues to R207.8 million ($93.1 million), while pre-tax profits slipped over 13 percent to R50.3 million ($22.5 million) due largely to higher operational and finance costs, as well as a high comparative with last year. However the group has launched a cost reduction programme, with a focus on corporate expenses.

Vertikal Comment

Yet another strong performance from Mills Rental, although there are clear signs now of growth beginning to slow – or perhaps stabilise. This is no bad thing, the rapid pace of growth the company has seen over the last couple of years or so inevitably introduces its own problems. It would be no bad thing for the aerial lift market in Brazil to take a breath and allow companies like Mills to consolidate the business, while preventing the sort of supply bubble that Spain is still suffering from some six years after it burst.