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17.08.2017

Alimak doubles up

Alimak has reported a very strong second quarter revenues more than double that achieved last year, thanks largely to acquisitions.

Revenues increased 92 percent to Sk1.97 billion ($244 million) with orders more than doubling to Sk2.14 billion ($265 million), largely due to the two major acquisitions – Avanti and Façade Access - that were made late last year. Organic growth of the original business was 14 percent. Pre-tax profits increased 43 percent to Sk196 million ($24.3 million).

In the second quarter revenues increased over 120 percent to Sk1.19 billion ($147 million), with order intake jumping 128 percent to Sk1.2 billion ($148 million). Pre-tax profits were Sk121.4 million ($15 million), almost 37 percent up on the same period last year.

Chief executive Tormod Gunleiksrud said: “Our second quarter performance was overall strong with organic order intake and revenue growth mainly driven by strong performance in Construction Equipment and After Sales, but it was also good to see the significant contribution from the acquired businesses, now fully financially consolidated in our first ‘clean’ quarter. Group results for the quarter was strong . For the six month period the lower margin level compared to the previous year reflects the lower profit margins in the acquisitions."

"Construction Equipment showed continued high order intake growth of 32 percen, based on solid underlying demand in all regions. Revenue growth of 58 percent was high and included deliveries of some large projects and should also be seen in view of the slightly lower than expected revenues in the first quarter."

“Industrial Equipment showed good growth in order intake and revenue with a strong contribution from the acquired businesses. Margins increased positively, affected by the acquisitions. Organic order intake declined 20 percent, primarily due to weak demand in oil & gas and general industry. The number of units sold was in line with last year but the previous year contained a higher share of specialised elevators with higher sales value and profit margin.”

“After Sales reported strong organic order intake growth of 28 percent with strong demand in the onshore refurbishment business. Including the acquired businesses, order intake grew 82 percent. Margins of 28.3 percent were impacted by lower margins in the acquired businesses. We are focused on expanding our After Sales business, which is a key part in the integration of the acquired companies.”

During the fourth quarter we will launch an After Sales pilot project in the US introducing a joint sales and service organisation, harmonised service and spare parts offering together with uniformed pricing strategy. The Rental business area reported five percent lower order intake and revenue mainly caused by the divestment of the US Rental operation.

Vertikal Comment

This is a transformational set of results, catapulting Alimak into a different league. The acquisitions look quite positive and will serve to add far more economic diversity to the business than the industrial division has with its high dependence on the energy business.

It is still early days in what is almost a new company, so the full year’s numbers will be more telling, but overall a very positive start.

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