06.05.2016

Another decline for Mills

The Rental division of Brazilian scaffolding and construction company Mills has posted a fall in first quarter revenues and profits

The Rental division posted a four percent decline to R76.4 million ($21.6 million) while pre-tax profits slipped almost three percent to R1.41 million ($398,000). Utilisation which has been declining for some time now took another dip below 60 percent, in spite of fleet disposals.

The group as a whole saw revenues decline 20 percent to R130 million ($36.7 million ) while last year’s first quarter pre-tax loss of R14.4 million increased substantially this year to R24.1 million ($6.8 million).

The company’s statement said: "The uncertainties in the economy and in politics continue to impact the markets in which we operate, with consequent reduction of investments, suspension of projects and reduction of the pace of works conducted by our customers. In view of this scenario, the ICEI - Industrial Businessmen Confidence Index, according to research conducted by the National Confederation of Industries (CNI), reached 35.5 in April 2016, against 39.2 in the same period of 2015. The consequence of the lack of confidence in the market is the paralysis of the economy with consequent delay of investments. With the resolution of the political crisis, in accordance with market perceptions, there is a perspective that investments will resume in the medium term”.

“This lack of investment generated a scenario of interrupted works throughout Brazil without a forecast for conclusion, works being performed at a slower pace, and innumerable essential works that have no forecast to progress from the phase of design and intention. There are very few construction works in mobilisation phase”.