Brazil’s Mills Estruturas e Serviços de Engenharia posted a fall in net revenues of more than 20% for the quarter ending 31 March compared to the corresponding period for 2014.

The figure of R$163.9 million (€47.8 million) was also nearly 10% down on the total for the three months ending 31 December 2014.

Net revenue from the company’s rental business was 18% down year on year, at R$79.6 million (€23.2 million), and just over 5% down on the previous quarter.

Mills also reported a fall in its utilisation rate, to 61.3%. This was mainly due to a slowdown in the oil and gas sector.

Reporting the results, Mills said: “The year of 2015 has been marked by uncertainties in the economy as well as in infrastructure and oil and gas.

“Our results reflect the commonly felt effects of weak economic cycles – lower demand, price pressure, a higher level of doubtful debt, and consequently lower margins.

“In this scenario, we will seek better results through operational improvements, synergies among the business units, sales of assets and reduction of expenses.”

Rental revenues for heavy construction totalled R$51.1 million (€14.9 million), which the company described as similar to the previous year, with utilisation at 64.8%. Major projects included the Olympic Park in Rio de Janeiro, together with underground railways, sewage treatment stations and hydroelectric power plants.

Capital expenditure for the quarter totalled R$6.4 million (€1.9 million), including R$1.2 million (€350000) on replacement rental equipment.

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