Emeco’s Revenue Jumps 27 Percent in Fiscal First Half, Returning to Profitability

Feb. 22, 2011
Australian earthmoving rental company Emeco Equipment posted AU$264.4 million (about U.S. $264 million) in fiscal first-half revenue, a 27-percent year-over-year jump, primarily as a result of higher utilization in Emeco’s rental fleet in its three core markets of Australia, Indonesia and Canada. Emeco’s Canadian operations are based in Alberta, with 85 percent of its Canadian revenue coming from the oil sands.

Australian earthmoving rental company Emeco Equipment posted AU$264.4 million (about U.S. $264 million) in fiscal first-half revenue, a 27-percent year-over-year jump, primarily as a result of higher utilization in Emeco’s rental fleet in its three core markets of Australia, Indonesia and Canada. Emeco’s Canadian operations are based in Alberta, with 85 percent of its Canadian revenue coming from the oil sands.

Emeco’s net profits for the six months ended December 31 were AU $24.1 million, compared with a $600,000 loss in the same period in 2009.

Emeco, during the past two years, has re-structured its operations, shutting down rental activities in Europe and the United States to concentrate on the three core markets. Company officials said in its first-half report that it will “continue to evaluate and pursue growth opportunities in its three core businesses” where they align with company strategy.

Rental fleet utilization was 88.8 percent in Australia, 85.8 percent in Canada and 83 percent in Indonesia.

Emeco is based in Perth, Australia, with Canadian operations based in Edmonton, Alberta. The company is No. 58 on the RER 100.