Here is a summary of the trading update from Somero Enterprises, Inc. as of July 30, 2024
Somero Enterprises provides an update on its trading performance ahead of its interim results announcement scheduled for August 29, 2024.
The US non-residential construction market remains healthy, but trading in North America is impacted by project delays and pauses due to elevated interest rates, labor shortages, concrete rationing, and inclement weather in H1 2024. As a result, H1 2024 trading in North America is expected to be below H1 2023.
The European market was active in H1 2024, with positive non-residential construction market conditions, resulting in H1 2024 trading comparable to H1 2023.
Inclement weather in Australia and declining trading in the Rest of World region, particularly in the Middle East and Latin America, also impacted performance.
The Company anticipates an improvement in H2 2024 over H1 2024 due to new product revenue growth and improved weather conditions.
Somero has initiated a company-wide workforce reduction of approximately 15% and is implementing strict cost controls to partly offset the profitability impact of revised 2024 revenue expectations.
Revised expectations for FY 2024revenues of US$ 110.0 million, EBITDA of US$ 30.0 million, and year-end cash of US$ 27.0 million.
Jack Cooney, President & CEO of Somero, remains confident in the long-term growth drivers and the companys ability to adapt to challenging conditions.
The update provides a comprehensive overview of Somero Enterprises trading performance and outlook for the remainder of the fiscal year.