Snorkel moves into profit

Euan Youdale Editor, Access International

17 August 2023

Snorkel has returned to profit, following losses last year and the sale of Ahern Rentals, formally part of the same group, according to co-owner Tanfield.

The US-based manufacturer saw a profit of US$1.6m in the second quarter of 2023, following a loss of US$4.3m in the same period in 2022. Sales also increased in the quarter by 7.7% to US$50.5 million, compared to US$46.8 million in the second quarter of 2022.

According to Tanfield, which sold a 51% majority stake of the company to Xtreme Manufacturing, part of the Ahern Family of Companies, in 2013, the EBITDA uptick resulted primarily from a marked improvement in the gross profit margin. In the second quarter of 2023 the profit margin increased to 13%, up from 2.8% in the same quarter of 2022.

Snorkel’s fully electric A46JRTE. (Photo: Snorkel)

The sales and profit jump in the second quarter followed increases in the first quarter of 2023. For the full six months sales increased 6.2% to US$94 million, compared to US$88.6m for the same period in 2022.

EBITDA for the half year translated to a profit of US$1.8m, compared to a loss of US$7.7m in the first half of 2022. Again, this was mainly thanks to an improvement in profit margin, which stood at 12.9%, up from 3.4% in the half year and 4.2% for the full 2022 year.

Tanfield said in its statement, “The board continues to be unaware of the reason behind the gross profit margin improvement from 2022 to 2023.”

However, at the end of last year, Don Ahern, owner of the Ahern Family of Companies, sold rental giant Ahern Rentals to United Rentals for around US$2 billion.

Tanfield added in its statement, “Ahern Rentals has been Snorkel’s largest customer by far and the board are therefore pleased to see that despite the change of ownership, sales have again continued to increase in the second quarter of 2023 and that sales now appear to be achieving improved gross profit margins.”