Aggreko forecasts 40% profit rise for first half of 2008

Aggreko forecast a 25% growth in revenues and 40% higher pre-tax profits for its first half of the year to 30 June in a trading statement before it entered its close period for the period.

The power and temperature control rental company said the growth had been broadly based, with its local businesses in the Middle East, Asia, Australia, Central and South America all making good progress. It said “significantly higher” trading profits were anticipated in Europe.

Aggreko said revenues in North America would be slightly higher, although profits lower, and that its International Power Projects division would see profits “well ahead” of the same period last year, with a 40% larger fleet and utilisation running at high levels.

For the full year, Aggreko said it now expected that profits would be above current market expectations, with its business in the US and Europe both seeing a modest reduction in demand for power more than offset by strong demand for temperature control equipment.

The company said the important summer season had got off to a good start, with the EUFA European football competition and high temperatures in North America. It added that “preparations for the Beijing Olympics are well in hand, with over 140 MW of power and nearly 500 km of cable in the process of being installed in 37 venues.”

The interim results will be announced on Tuesday, 26 August 2008.