Aggreko expects higher profits despite US/Europe slump

Aggreko said it expects profits levels in 2009 to be slightly higher than in 2008 thanks to cost cutting measures and continued growth in its international power projects business. Its local businesses continue to fall compared to last year, but Aggreko said it did not expect these to get any worse.

The company, in its interim trading statement covering the period from 1 July to 15 October, said its local business continued to be very difficult, with revenues down by a third in North America and by 15% in Europe and the Middle East.

Its international local business revenues fell by 42%, although this period in 2008 included the Beijing Olympics, one of Aggreko's largest ever contracts.

On a constant currency basis, total group revenues for the three months to 30 September were 16% lower. Revenues and margins at the international power projects division grew by around 10%. Aggreko said the division's third quarter "saw an improvement in order intake for new work, and, encouragingly, the number of megawatts we quoted was noticeably higher than in the previous two quarters."

The company reported a positive outlook for the rest of the year; "Notwithstanding the difficult macro-economic conditions, we believe that International Power Projects will continue to perform well during the fourth quarter, and that conditions in the Local business are unlikely to get any worse."