Second quarter revenues down at Algeco Scotsman
By Steve Ducker20 August 2015
US-based modular space specialist Algeco Scotsman reported a 1% drop in overall year on year revenues for the second quarter of 2015, as lower volumes were only partially offset by an increase in income from remote accommodations.
Despite this, the company repeated its statement from the first quarter results that net capital expenditure for the year will be as much as $230 million (€210 million) as it looks to push up global utilisation from 73% to 75%.
Leasing services revenue for the three months to 30 June was almost unchanged from 2014, at $335.5 million (€301.5 million) compared to $336.1 million (€302.1 million) the year before.
Total revenue, which also included sales of new and rental units, was $431.9 million (€388.2 million), down from $434.4 million (€390.4 million) 12 months ago.
Geographically, Europe, Middle East and Africa was the best performing area with revenue up by more than 6% to S205.7 million (€184.9 million) as a result of higher volumes and new project wins.
By contrast, Asia Pacific was down 15% to $61.7 million (€55.5 million). Average utilisation fell for both modular units (74% in 2014 to 65%) and remote accommodations (61% to 48%).
US revenues were broadly the same at S167.5 million (€150.5million), against 168.6 million last year. Capital expenditure in the US during the quarter, at $47.3 million (€42.5 million) accounted for almost two-thirds of Algeco Scotsman’s gross fleet expenditure of $75.8 million (€68.1 million), with a further $25 million (€22.5 million) spent in Europe, Middle East and Africa.
Net capital expenditure for the quarter, after used unit sales were taken into account, was $68.7 million (€61.7 million).
The company said that the USA, Germany and France would continue to be the main areas of investment, while capital expenditure in other countries would be reduced, and significantly reduced in Asia Pacific due to the worsening market conditions there.
Algeco Scotsman operates in 29 countries worldwide and had revenues in 2014 of just under €1.5 billion, making it the fourth largest company overall in the recently published IRN100 and the largest portable accommodation and storage business.