Somero Enterprises Inc announced on Tuesday it has reduced its revenue expectations for 2024, due to ‘inclement’ weather in the US, as well as delayed projects, elevated interest rates, labour shortages and concrete rationing.
Somero is an equipment and training provider for advanced concrete floor placement based in Fort Myers, Florida.
Somero said it expects trading in North America for the six month that ended June 30 to be down on last year. It also noted a decline in trading in Australia, also due to weather, and in the Middle East and Latin America for the half-year.
More positively, the company reported an ‘active’ half in the European market, with trading comparable to a year ago.
Somero said it now expects $110.0 million revenue for 2024, compared to market consensus of $120.7 million, which would have been flat on 2023.
It expects $30.0 million in earnings before interest, tax, depreciation and amortisation, compared to current consensus of $34.0 million. That will be down from adjusted Ebitda of $36.5 million in 2023.
Looking forward, Somero expects an ‘improvement’ in the second half of the year, ‘driven by a combination of new product revenue growth, including the launch of a third new machine, and an expectation of improved weather conditions’.
Chief Executive Officer Jack Cooney commented: ‘Despite the impact of persistent challenges and poor weather conditions on trading in the first half, the non-residential construction market remains fundamentally sound. Importantly, the long-term growth drivers remain intact, and we are working hard to expand our product offering and build our presence internationally to capitalize. As those factors outside our control abate, we would expect performance to improve.
‘In the meantime, Somero is built to withstand challenging conditions. We have a solid track record of adapting to changing conditions and then emerging strongly.’
Somero shares were down 9.1% to 318.00 pence each in London on Tuesday morning.
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