Ferronordic Machines AB Reports Earnings Results for the First Quarter of 2012; Provides Earnings Guidance for the Remaining Quarters of 2012
May 15, 2012 at 02:34 pm IST
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Ferronordic Machines AB reported earnings results for the first quarter of 2012. The company experienced strong growth in the first quarter of 2012 with the number of machines sold increasing almost 70% year on year to 294 units. Revenue from machine sales increased 35%, from parts 30% and from service 35%. In addition, revenue from the rental business grew significantly. EBITDA for the quarter was EUR 1.5 million, compared to EUR 1.1 million, an increase with approximately 34% compared to first quarter of 2011. Cash flow from operating activities was solid, resulting in a decrease in net debt from EUR 63 million at the end of 2011 to EUR 56 million at the end of the quarter. The first quarter of the year is traditionally the weakest quarter of the year due to the holiday period in January, the shorter month of February and extreme weather conditions in more or less the entire country. Sales revenue was EUR 57.6 million, compared to EUR 42.1 million for the last year. Operating profit amounted to EUR 1.2 million, compared to operating loss of EUR 0.3 million for the last year. The after-tax loss was EUR 0.5 million, compared to EUR 0.7 million for the last year. Cash flow from operating activities was EUR 9.6 million, compared to cash flow used in operating activities of EUR 17.6 million for the last year.
The financial instability in the Eurozone however continues to affect the sentiment to a certain extent. Overall, the company remain cautiously optimistic as it look forward through the remaining quarters of 2012, but continue to follow the key risks created by the international economic instability and the potential effects on business conditions in Russia.
Ferronordic AB is a Sweden-based company engaged in sales and distribution of construction equipment. It operates as an authorized dealer of Volvo Construction Equipment, Renault trucks and Volvo CE. Additionally, it distributes Volvo and Renault Trucks, Volvo Penta, among others. Through its business segment, Equipment Distribution, the Company offers sale and rental of new and used machines and other equipment, contracting services, as well as aftermarket support (sales of parts and service). The Company distributes excavators, backhoe loaders, dump trucks, pipelayers, forestry machines, bulldozers and gensets. The Company provides its services to other companies in the Quarries and aggregates, mining, road construction, transport and logistic and general construction industries