Pre-tax Profits Jump 43 Percent in First Half, Aggreko Reports

Aug. 29, 2008
Temporary power specialist Aggreko posted a pre-tax profit boost of 43 percent and said strong demand in emerging markets will help it exceed market expectations for full-year profits. Pre-tax profits were £67.9 million (about U.S. 123.5 million). Worldwide revenue for the first half was £408 million (about U.S. 742 million), compared with £317.5 million in the first half of 2007, a 28-percent hike.

Temporary power specialist Aggreko posted a pre-tax profit boost of 43 percent and said strong demand in emerging markets will help it exceed market expectations for full-year profits. Pre-tax profits were £67.9 million (about U.S. 123.5 million). Worldwide revenue for the first half was £408 million (about U.S. 742 million), compared with £317.5 million in the first half of 2007, a 28-percent hike.

The company said growth was driven by strong demand in emerging markets and high rates of investment in new rental fleet. The company said profits increased in the Middle East, Asia, Australia, Central and South America and Europe, while North America’s profit was the same year over year despite difficult economic conditions.

Aggreko said International Power Projects revenues grew 34 percent year over year in constant currency.

“Aggreko has delivered another strong operational and financial performance in the first six months of 2008, with trading profits in constant currency in our Local Businesses and International Power Projects increasing by 42 percent and 30 percent respectively,” said chairman Phillip Rogerson. “We now anticipate that Aggreko’s performance for the year will exceed current market expectations.”

“The structural imbalance between global demand for, and the supply of, power continues to drive our business,” added Rupert Soames, chief executive. “We are investing heavily in new fleet as well as rapidly expanding our reach, capability and scale to meet strong demand in emerging markets. The momentum we have developed in our
Businesses in the Middle East, Asia, Africa and Central and South America will more than offset softer demand in North America and Europe and will enable us to deliver another very strong performance in the second half.”

With international headquarters in Scotland, Aggreko North America, based in Houston, is No. 13 on the RER 100.