Australian earthmoving rental company Emeco Holdings will focus more on the mining sector, CEO Keith Gordon said last week after the completion of a six-month strategic review of its business portfolio. After essentially pulling out of the United States and European rental markets recently, Gordon said Emeco will pull out of the civil infrastructure market in Australia and sell its Victorian rental business there to focus on the mining industry.
Gordon also said Emeco will downsize and realign its Australian sales and parts business in order to free up about $60 million in capital.
“By taking action to free up capital from these underperforming businesses and refocusing on our core markets, the Group is well placed to capture profitable growth opportunities and deliver improved shareholder returns,” said Gordon.
Emeco said its preliminary operating net profit after tax is expected to be in the range of AU $40 million to $41 million (about U.S. $34.7 to $35.6 million) for fiscal year 2010, in line with previously issued guidance. Emeco is scheduled to release its full-year results August 25.
In the U.S., Emeco earlier this year closed its Houston office, moving its North America headquarters to Edmonton, Alberta, Canada, where the company focuses primarily on work in the oil sands region.
Emeco is No. 58 on the RER 100.