Australia-based Emeco Equipment posted an 11.4 percent revenue increase for its fiscal year, bringing in AU$617.9 million (about U.S. $530 million) compared with AU$554.4 million in the previous fiscal year. EBITDA margins dropped from 23.2 percent in the previous fiscal year to 19.5 percent in FY08, because of utilization impacts of revenue, an increasing cost base and a higher contribution from lower margin equipment sales and ancillary rental services.
The second half of FY08 brought improved trading conditions in each of Emeco’s international business with the exception of Europe, which slowed because of a strengthening euro.
Indonesia experienced softness in the rental market during the first half of FY08 with low utilization levels resulting in a 7.5 percent year-over-year EBITDA. However, rentals increased in the second half.
Emeco’s Canadian business grew its revenues 30 percent in FY 08’ because of strength in demand in the mining sector.
In the United States, management achieved its goal of profitability in the second half of ’08 with the U.S. rental business gaining traction because of increased mining activity in the Appalachian coal region. A quality workshop facility in Kentucky, the recruitment of experienced management and operational personnel and the ongoing development of the Emeco brand all contributed to rental success, the company said.
Based in Australia, with U.S. operations based in Houston, Emeco Equipment is No. 54 on the RER 100.