emeco returns to profitability

Updated: 10:01, Tuesday February 22, 2011
Earthmoving equipment provider Emeco Holdings Ltd has returned to first half profitability and says it is looking at growth opportunities.

Emeco's net profit for the six months to December 31 of $24.1 million was up from a $600,000 loss in the previous corresponding period.

Revenue was up 27 per cent from the previous corresponding period to $264.4 million, primarily due to higher utilisation of Emeco's rental fleet in its three core markets of Australia, Indonesia and Canada.

The net profit included in a $6 million impairment relating to debt it was unable to recover from an Indonesian client.

Emeco declared an interim dividend of two cents per share, and a special dividend of five cents per share relating to the sale of assets in the United States, Europe and Australia.

The sales were made as part of the company's strategy to focus on just three key markets.

With the restructure largely completed, Emeco is now in a position to pursue 'value accretive growth opportunities', it said.

'The company will continue to evaluate and pursue growth opportunities in its three core businesses,' the company said.

'Acquisitions may also be considered where they are aligned with the strategy.'