30.07.2014

Negative first half for Bronto

Truck mounted lift manufacturer Bronto has reported a quarterly and half year loss as order intake climbs.

Total revenues for the six months were $58.6 million over 12.5 percent down on the same period last year, due to a combination of shipments deferred to the second half and currency fluctuations. The company also reported a second negative quarter, posting a loss of $1.1 million compared to an operating profit of $4.1 million in the same period last year. Order intake for the six months was up more than 27 percent to $91.9 million.

Moving on to the second quarter revenues were nine percent lower at $34.1 million, while order intake improved almost six percent to $40.4 million. The operating loss for the period was $300,000 compared to a profit of $3.4 million in the same quarter last year. The backlog/order book at the end of June was $112 million, compared to $87.3 million at the same point in 2013.

The company said that the deferrals and loss resulted from supply chain disruptions, temporary operational inefficiencies associated with plant improvement programmes, and an unfavourable product mix.

Bronto is a division of US group Federal Signal, it saw revenues for the six months improve almost three percent to $434.8 million, while pre-tax profits more than doubled to $34.5 million.

Chief executive Dennis Martin said: “Consolidated second quarter results show significant improvement. Sales in the Fire Rescue group were down $3.4 million, compared to the second quarter of last year, largely due to operational issues that resulted in a number of deliveries being deferred into the second half of the year.

Vertikal Comment

Bronto is clearly struggling operationally at the moment, apparently due to delays in the supply of chassis and other critical components. However order intake continues at a positive rate with the company now carrying an order book strong enough to keep it busy for a year or more. It should be able to recoup most of the first half shortfall in the second half, although delays such as this do cause production inefficiencies that cannot be compensated for.

The company’s new products appear to have received a very positive reception which should stand it in good stead as it heads towards 2015. Our guess is that 2014 will be a weak year overall while 2015 will be one of its best.