US recovery not enough for Algeco Scotsman

Modular space specialist Algeco Scotsman reported flat year on year revenues for the first quarter of 2015, with increased business in the Americas countered by a decline in Asia Pacific.

Despite this, the company said it would “continue managing capital aggressively” and was looking towards a total investment of up to $230 million (€210 milion) by the year end, mostly in the USA, UK, France and Germany.

Leasing services revenue for the three months to 31 March was almost unchanged from 2014, at $314.1 million (€286.4 million) compared to $314.8 million (€287 million) the year before.

Total revenue, which also included sales of new and rental units, was $404.2 million (€368.6 million), a year on year increase of just over 2%.

Within the Americas, the recovery in the USA continued and there was a good performance from Mexico. In Europe, the UK was doing well, with France and southern Europe stable or stabilising, and Germany “regaining traction”.

The decline in Asia Pacific was said to be due to a continued slowdown in the energy and natural resources sector, though the company said its joint venture in China was progressing well.

Though overall revenues increased, all three regions reported a fall in the average number of modular units on rent, which together dropped by around 4%.