04.11.2009

Strong result from Bronto

Finnish based truck mounted lift manufacturer Bronto, has reported a strong set of results for the third quarter, with order intake up 24 percent from quarter two, while operating income for the quarter more than tripled to €2.2 million.

Total revenues for the quarter were €27.4 million, down marginally on last year, while order intake compared to the same quarter in 2008 was 23 percent lower, but as we've said up significantly on quarter two of this year.

Revenues for the nine months to the end of September, were up almost 10 percent to €101.4 million with operating income more than doubling to €9.5 million, thanks to a substantial rise in gross margins from 2.5 to eight percent following the company’s move from outsourcing to in-house production with the expansion of its production facilities.

Year to date order intake dropped almost 50 percent to €68.2 million from a very strong 2008, although the trend has improved in recent months as the company works off some of its backlog.

Vertikal Comment

Most companies in the aerial lift business would give anything for a set of results like this. Bronto was fortunate in that it entered the recession with a very strong order book and having completed its move away from expensive subcontracting of certain manufacturing functions.

The company has also benefited from strong demand for its fire fighting lifts, while commercial/industrial sales have ‘flagged’ but is likely to see an upturn in demand for its industrial lifts now as it improves its sales coverage and confidence within the rental sector returns.

Timing is, as they say, everything.