Construction and truck equipment dealer Ferronordic’s U.S. segment revenue improved in the fourth quarter as the company completed its first full year in the U.S. market.
Stockholm-based Ferronordic acquired Clearfield, Pa.-based Rudd Equipment’s 13 facilities across nine states in November 2023 for $95 million.
Ferronordic increased overall inventory and rental fleet size in the United States in the past year to gain market share and increase aftermarket activity, Chief Executive Lars Corneliusson said on today’s earnings call.
“In the articulated loader and excavator segments, we have been successful in gaining market share in the U.S. throughout the year,” he said. “It’s very good to see that we’re actually able to increase the sales and create a population for the aftermarket.”
By the numbers
During the fourth quarter, Ferronordic reported:
- U.S. segment revenue of 720 million krona ($67.7 million), up 133.8% year over year;
- U.S. equipment and truck sales of $39.4 million, up 97.6% YoY;
- U.S. new unit sales of 65, up 38.3% YoY; and
- Total revenue of $123.4 million, up 43.4% YoY.
For the full year, Ferronordic reported:
- U.S. segment revenue was $264.6 million, up 813.3% YoY;
- U.S. equipment and truck sales finished at $145.8 million, up 631.1% YoY;
- U.S. new unit sales totaled 277 units, up 489.4% YoY; and
- Total revenue totaled $444 million, up 64.9% YoY.
Despite strong U.S. operations, Ferronordic continues to navigate inflationary pressure on itself and its customers, CFO and head of investor relations Eric Danemar said during the earnings call.
“That said, the funds rate decreased during the quarter,” he said. “We are impacted directly by our funding, both with Volvo Financial Services and our other funding facility that we use in the United States, but it also impacts our customers, of course, their liquidity.”
Shares of Ferronordic [STO: FNM] were trading at $62.10 as of market close, down $4.60 or 6.90%, from market open. The company has a market capitalization of $902.46 million.
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Editor’s note: All amounts have been converted to U.S. dollars.
