Brazil’s largest equipment rental company, Mills Estruturas e Servicos de Engenharia S.A., posted record net revenues and EBITDA in the second quarter, topping the first quarter by 13.1 percent and 9.8 percent respectively. Net revenues totaled Brazilian Reales 164 million (about U.S. $101.2 million), a 24.9-percent increase compared with the same period a year ago.
Record EBITDA was BRL 8 million, a 15-percent hike compared with Q210. Capex in the quarter totaled BRL 105.2 million (about U.S. $65 million), of which BRL 99.7 million was spent on organic growth and BRL 5.5 million in the acquisition of GP Sul. Mills’ organic growth investment budget for 2011 was revised upward to BRL 432.7 from BRL 337.2 million, a 28-percent hike because of strong market demand and the successful implementation of the new branches in the Jahu (residential and commercial construction) and rental divisions.
The industrial services division delivered the highest net revenue, BRL 57.5 million, 35.1 percent of Mills’ total revenue. The rental division posted the highest year-over-year revenue growth, a 93.7-percent jump, as a result of the expansion of the company’s motorized access equipment fleet and the success of its geographic expansion.
The 10 rental branches the company opened in 2010 contributed 54 percent of the revenue for the rental division in the second quarter.
