Mills continues growth trajectory in Brazil

Brazilian company Mills Estruturas e Serviços de Engenharia, reported a 35.5% increase in revenues to R$211.8 million for the second quarter of the year, with net profits up 22.5% to R$48.1 million.

The Rental division, which mainly rents aerial platforms and telehandlers, saw revenues rise by 62.6% to R$90.1 million year-on-year, which is a record for the second quarter.

The increase reflects a greater volume of equipment on rent – five new rental depots were opened in the second quarter – with utilisation levels remaining steady.

Mills said that 4000 new aerial platforms had entered the Brazilian market up to May this year, bringing the total access fleet up to 25000 units. “We believe that, from June onwards, there will be a slowdown of imports, because the higher exchange rate for the US dollar discourages small and medium-sized companies from buying new equipment, thus facilitating the sale of semi—used equipment from the rental business unit”, said the company in its results announcement.

The buoyant results reflect the continuing demand from Brazil’s construction sector, including projects related to the Olympics and World Cup. Brazil is also engaged in heavy investments in its public housing programme, while private investment includes huge spending on shopping centres, of which 41 are currently under construction with a further 32 planned for 2014.

The five new rental branches opened during the second quarter were located in Brasília, Goiânia (Goiás); Itajaí (Santa Catarina); Manaus (Amazonas) and Rio Grande (Rio Grande do Sul). Mills said it aimed to open six more branches before the end of 2013, bringing the total to 29.