Revenues down at Algeco Scotsman

31 March 2016

Temporary accommodation specialist Algeco Scotsman has reported a 10.7% year-on-year drop in revenues for 2015 to US$1.55 billion (€1.37 billion) after decreases in the Americas and Asia Pacific offset growth in Europe.

The drop in revenues also included US$164 million (€145 million) thanks to the impact of unfavourable foreign currency movements, as most currencies weakened against the US dollar during the year. Excluding the effects of foreign currency, total revenue decreased 1.3% year-on-year.

The company said a 1% drop in the Americas business was down to lower modular leasing and new unit sales in Canada, together lower performance and the sale of Eurobras, which resulted in the company ceasing operations in Brazil. It said this was nearly offset by an increase in remote accommodation revenue associated with a new facility.

In Europe, revenues were up 6.6% year-on-year – growth that was down to new unit sales, Algeco said.

And revenues in Asia-Pacific declined 20.3% as a result of the continued weak economic climate in Australia, largely due to reduced commodity sector demand, according to the company.

Average modular units on rent for 2015 and 2014 were 213363 and 222741, respectively. The decrease was mainly due to the sale of Eurobras, as well as declines in units on rent in Asia-Pacific and Canada.

The average modular utilisation rate during 2015 was 73.5%, compared to 74.0% during 2014. Again, this was driven by lower utilisation in Asia Pacific, Canada, and Brazil.

Algeco said gross profit decreased 14% year-on-year to US$545 million (€481 million) for the 12 months to 31 December, 2015.

Capital expenditure for the year totalled US$278 million (€245 million).

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