Australian rental group Emeco Holdings last week announced fiscal year results that exceeded analysts’ expectations, while forecasting strength for the coming year.
The Perth, Australia-based rental company, posted a net profit of AU $22.67 million (about U.S. $17 million).
Emeco has a growing presence in the North American market, with headquarters in Houston and additional branches in Atlanta and Edmonton, Alberta. It also has facilities in Indonesia and the Netherlands. The company held its initial public offering in Australia in July.
For its fiscal 2006 ended June 30, Emeco’s pro-forma revenue was AU $382.8 million (U.S. $287.9), topping its IPO pro-forma forecasted revenue of AU $381 million (U.S. $286.6 million). Pro-forma EBITDA was AU $143.4 million (U.S. $107.9 million) a 48.7 percent leap. The acquisitions of Edmonton-based River Valley Equipment in August 2005 and Andy’s Earthmovers, an Australian heavy-equipment rental company, in January 2006, contributed to the income increase.
Pro-forma rental revenue for the fiscal year was AU $220.1 million (U.S. $165.6 million).
Emeco recently acquired a large package of heavy earthmoving equipment partially deployed under rental contracts with coal mining companies in Kentucky and West Virginia. Emeco opened a branch in London, Ky., to maximize rental opportunities in the Appalachian region.
The company forecasts strong growth in the coming year, as well as “annual growth in earth moved for Emeco’s major industry exposures expected at approximately 6.1 percent from 2005 through 2010,” the company said in a statement.
“Sustained demand from China and India for key commodities continues to support further development of mining infrastructure and forecast increases in volume of earth moved in each of the major geographies in which Emeco operates,” the company said. “Civil construction demand for heavy earthmoving equipment in Australia and Canada also remains strong with the outlook particularly positive in North America as a result of the Alaskan/Canadian Pipeline project and U.S. Federal Highways plan.”
Emeco plans AU $156.7 million (U.S. $117.9 million) for growth capital expenditure for 2006-07.
Emeco North America is No. 76 on the RER 100.