23.02.2017

Tougher fourth quarter for Alimak

Mast climber and hoist manutacturer Alimak saw fourth quarter profits slip back on slightly higher revenues.

Full year revenues edged up one percent to just over SK2 billion ($228 million) with stronger a performance from construction and rental markets offset by lower industrial revenues due to a slow down in oil & gas activity. Pre-tax profits were 42 percent higher at SK281.4 million ($31.3 million), while order intake during the year improved 1.5 percent to SK2.14 billion ($238 million)

In the fourth quarter revenues were two percent higher at SK597.5 million ($66.4 million) while pre-tax profits slipped 28 percent to 73.5 million ($81.8 million) the company blamed the set back on merger and acquisition activity which included the acquisition of Facade Access Group and Avanti Wind Systems. Order intake in the period improved around 22 percent to SK518.8 million ($57.7 million).

Chief executive Tormod Gunleiksrud said: “We ended the year with a strong order intake in Construction Equipment and Rental, higher margins in After Sales. Thus, three out of four business areas showed good or strong results in the quarter, while Industrial Equipment revenues
and earnings continued to be negatively impacted by the weak demand in the oil & gas and mining industries.”

“Construction Equipment demonstrated strong growth in all regions in the quarter. We continued to gain market shares and expanded our geographical footprint. The market for Industrial Equipment remain challenging, mainly due to the low investment levels in oil & gas and mining industries. Progress was however made by further strengthening the sales efforts into other industrial segments – particularly ports and power. Business area Rental reported strong growth in order intake during the quarter.”

“During the fourth quarter, we acquired Facade Access Group and Avanti Wind Systems – two strong market leaders in their respective niches. The acquisitions broaden and diversify our product portfolio and will give us an expansion into new growth segments. The acquisition of Avanti Wind Systems was finalized on 30 January and is consolidated as of 1 February 2017. The closing of Facade Access Group is expected during the first quarter of 2017. The ambition for 2017 is to safeguard successful integration of the two acquisitions into the Group and start capturing the cost synergies in the supply chain and expand the after sales offering.”

“Alimak will, with the addition of the acquired companies, have an installed base of more than 66,000 units. We see a good potential to further develop our after sales offering by leveraging the global network and strong after sales business model. During 2016 we continued to take further steps in strengthening our global position. With our enlarged product and service portfolio, 2,400 dedicated employees and a business operation covering more than 100 countries, we are well positioned for further growth in 2017.”