Sales grow 50% at Federal Signal's Bronto division
By Maria Hadlow08 May 2012
The Fire Rescue division of Federal Signal, which includes Bronto Skylift, reported a 50% increase in turnover (to $31.8 million) in the first quarter of 2012 compared to the same period in 2011. Orders are up 2% in that perod and backlog stands at $88 million on 31 March 2012 compared to $76.6 million last year.
According to Federal Signal non-USA orders increased $4.6 million, primarily due to stronger demand from maintenance rental equipment companies in the Australian and European markets. USA orders declined $3.8 million, as the demand in the industrial market softened during this quarter.
The 50% increase in sales volume was driven by increased shipments during the current quarter.
Operating income was consistent for the three months ending March 31, 2012 at $0.8 million compared to the respective prior-year period, despite increased sales volume. Operating margin declined 1.3% due to the "lower gross profit resulting from unfavorable product mix, such that the impact of the lower margin primarily in the European markets more than offset the increase in sales volume."
Overall Federal Signal's turnover increased 29% in the first quarter to $225 million with operating income standing at $7.1 million versus a loss of $1 million in Q1 2011.