17.08.2023

Snorkel back to black

US aerial lift manufacturer Snorkel saw a marked improvement in its first half margins, which largely went through to the bottom line.

First Half
Total revenues for the six months to the end of June, were $94 million, up 6.2 percent on the same period last year, higher margins had a major impact on the profitability turning last year’s loss of $8.9 million into a first half profit of $1.01 million this year.

Second Quarter
The upward trend gathered a little pace in the second quarter with sales improving almost eight percent to $50.5 million. Net profit for the period was $1.18 million, compared to a loss in the same quarter last year of $4.9 million.
The results have been provided in a half year statement from Tanfield which still claims a 49 percent stake in the business. That is due to be challenged in a court hearing next summer.

Vertikal Comment

While Snorkel’s growth rates might not be as strong as those we have seen from JLG and Genie, the company continues to make progress and has its own following, thanks to some dedicated dealers, managers and a network of wholly owned distribution companies. However, the company now has a new chief executive in the form of Cory Rosencranse who played an instrumental role in the sale of Ahern Rentals to United Rentals at the end of last year.

The big question is what will Don Ahern do next? Now that his rental business is gone, he has the opportunity to focus more of his efforts/investment on the Snorkel and Xtreme Manufacturing businesses, or his other activities. He may of course decide that this is a good time to sell the business. If this is a possible scenario, it is unlikely that anything will happen on that front until the legal battle with Tanfield is dealt with, possibly sometime next year.

All said and done a positive first half for the company.