Challenging three quarters for Mills

Brazil-based Mills Estruturas e Serviços de Engenharia reported a revenue drop in the third quarter of 2014 to R$191.5 million, reflecting lower utilisation rates in its three business units.

At the end of the third quarter revenues stood at R$ 513.9 million, 3.3% higher than in the first nine months of 2013. Net revenue was R$612.3 million, which the rental company said was similar to the same period last year. However, it said challenges this year came from a reduction in revenues in sales, technical assistance and other services.

Earnings before interest, taxes, depreciation, and amortisation and net earnings were R$ 280.1 million and R$ 70.5 million, respectively, both negatively influenced by the company’s Easy Set product cost adjustments of R$12.3 million, put into place in the third quarter.

Excluding the effect of Easy Set, EBITDA totalled R$292.4 million, 2.8% below the first three quarters of 2013, with an EBITDA margin of 47.8%. Excluding Easy Effect, net earnings reached R$78.6 million for the three quarters, 34.9% lower than last year, influenced by higher depreciation and interest rates.

Return on invested capital (ROIC) was 9.4%, or 9.9% excluding the Easy Set effect, against 14.4% for the same period last year. While capital expenditure reached R$ 176.6 million, of which R$ 155.3 million was for rental equipment.