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Overview
Ferronordic, a dealer in construction and truck equipment, saw an increase in revenue from its U.S. segment during the fourth quarter, marking the completion of its inaugural year in the U.S. market.
The Stockholm-based company expanded its operations by acquiring the 13 facilities of Rudd Equipment in Clearfield, Pennsylvania, for $95 million in November 2023.
In the past year, Ferronordic has boosted both its inventory and rental fleet size in the United States, aiming to enhance market share and aftermarket services. According to CEO Lars Corneliusson, this strategy has proven effective.
“Throughout the year, we have successfully gained market share in the articulated loader and excavator sectors in the U.S. It’s encouraging to see that we are able to increase sales and develop a customer base for aftermarket services,” he mentioned during the earnings call.
Performance Metrics
In the fourth quarter, Ferronordic reported:
- U.S. segment revenue of 720 million kronor ($67.7 million), a 133.8% increase year-over-year;
- Equipment and truck sales in the U.S. of $39.4 million, climbing 97.6% YoY;
- New unit sales totaling 65 units, a rise of 38.3% YoY;
- Total revenue reaching $123.4 million, up 43.4% YoY.
For the entire year, Ferronordic disclosed numbers as follows:
- U.S. segment revenue was $264.6 million, up 813.3% YoY;
- Equipment and truck sales in the U.S. totaled $145.8 million, a 631.1% growth YoY;
- New unit sales reached 277 units, up 489.4% YoY;
- Total revenue amounted to $444 million, a 64.9% increase YoY.
Despite the positive performance in the U.S., CFO Eric Danemar noted that Ferronordic faces ongoing inflationary pressures affecting the company and its customers.
“Notably, interest rates decreased during the quarter,” Danemar stated. “Our funding strategies with both Volvo Financial Services and other facilities in the U.S. influence us as well as our customers’ liquidity.”
As of market close, Ferronordic’s shares [STO: FNM] traded at $62.10, dropping by $4.60 or 6.90% since the market opened, with a market capitalization of $902.46 million.
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Note: All amounts have been converted to U.S. dollars.
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