Ferronordic enters US market strong, despite construction softness

Construction and truck equipment dealer Ferronordic completed its first full quarter in the United States with the American division becoming the largest segment of the company’s operations. 

The Stockholm-based company acquired Clearfield, Pa.-based Rudd Equipment for $95 million in November 2023. 

Ferronordic distributes Volvo Construction Equipment, Hitachi, Sandvik and Link-Belt lifts at 13 locations across nine states along the Rust Belt through its acquisition of Rudd, which contributed heavily to an 86% revenue increase year over year for Ferronordic, Chief Executive Lars Corneliusson said on today’s earnings call. 

“We invested into the U.S. at the end of last year, and we have had a good start in the U.S.,” he said. “Q1 was the first full quarter where we are consolidating our U.S. operations into our reporting, and that very much led to the 86% revenue growth, which is mainly driven by the U.S.” 

While sales for Volvo Construction Equipment declined 2% YoY, according to Volvo Group’s April 17 earnings release, Ferronordic saw demand remain strong and market share grow, Corneliusson said. 

“We gained market share in [the U.S.] market, and especially we did so in the segment of articulated haulers, which is very good for us,” he said. “It’s an important segment, as Volvo has a strong position in that segment, and it’s also something which is boding well for future sales or service and spare parts.” 

By the numbers

For the quarter ended March 31, sales in Germany and Central Asia declined, according to the company’s earnings release. 

Also: 

• U.S. equipment and truck sales totaled 439 million krona ($41 million); 
• German equipment and truck sales landed at $24.4 million, down 30.4%; 
• Central Asian equipment and truck sales reached $1.8 million, down 72.1%; 
• U.S. segment revenue finished at $65.3 million; 
• German segment revenue ended at $41 million, down 19.9%; 
• Central Asian segment revenue was $3.2 million, down 59%. 

Meanwhile, Rudd Equipment sold 81 new units and 23 used units in Q1, Corneliusson said. The company also converted 23 units to sales from rental, as customers bought out their rental units. 

Shares of Ferronordic [STO: FNM] were trading at $TKTK as of market close, up TKTK%, from market open. The company has a market capitalization of $TKTK million. 

Editor’s note: All amounts have been converted to U.S. dollars.