Aggreko's local businesses show decline

By Murray Pollok23 June 2009

An Aggreko generator being loaded onto an Antonov cargo plane.

An Aggreko generator being loaded onto an Antonov cargo plane.

Aggreko said its local rental businesses in Europe and North America had deteriorated in the second quarter, with temperature control equipment most affected.

In a trading statement, it said local business - customers served by nearbye Aggreko depots - in constant currency will be 10% down in North America and 11% lower in Europe and the Middle East.

Aggreko said it expected the local business to face challenging conditions in the second half of the year, in particular since the same period in 2008 benefitted from the Beijing Olympics and very high storm related revenues in North America.

The decline in local businesses is being partially offset by continued strength of Aggreko's international power projects. Aggreko said; "We expect that this business will grow its revenues in the first half, in constant currency and excluding pass-through fuel, by around 40%, and by over 80% in sterling terms. Whilst the rate of signings of new projects has slowed, the prospect pipeline remains strong."

Overall, the company said total revenues for the first six months of the year will grow by at least 20% and that profit before tax will be about 55% higher than the prior year. In constant currency, and excluding pass-through fuel, revenues are expected to grow by around 5% and trading profit by about 15%.

The trading update was given prior to it entering its close period for the half-year to 30 June 2009. Interim results will be announced on Tuesday, 25 August.

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