23.04.2010

Loxam down 18%

French based rental group Loxam has reported full year revenues for 2009 of €697.7 million 17.7 percent down on 2008. Revenues in France fell 17 percent to €593 million, while revenues elsewhere dropped by 27 percent to €103.8 million.

Net profits meanwhile fell by 93 percent to €2.8 million. Capital expenditure was €36.8 million compared to €213.7 million in 2008.

In order to adjust to the slower market Loxam cut the number of employees by 11 percent from 4,400 to 3,900. The number of locations fell to 528 from 543 at the end of 2008. The cuts included the closure of all but one of its depots in Ireland.

Vertikal Comment

This is not such a bad result for Loxam in comparison to some of its competitors and its concentration in France has helped given that France has weathered the slowdown better than many countries.

Outside of France the news is not as good and reflects its generally different and more specialist strategy to its home market where it is a general rental company.

The company is forecasting stability for 2010 with revenues expected to be marginally lower with marginally better profitability delivered by its cost savings and restructuring.