Last checked at 27 Jan 2009 07:00
January 27, 2009
Somero Enterprises, Inc ®
("Somero" or "the Group")
Period End Trading Update
The Board of Somero Enterprises, Inc®, the North American manufacturer of patented laser guided equipment used for the spreading and leveling of high volumes of concrete for floors in the construction industry, is pleased to confirm that revenues and earnings for the year to 31 December 2008, which included significant restructuring charges, were in line with its expectations.
The credit crisis has slowed sales in most countries where Somero does business with the exception of China and the Middle East, which exceeded expectations and continue to offer opportunities for growth.
The major cost reduction programme implemented by the Group in 2008 has been very effective and will, in aggregate, result in a reduction in SG&A expenses of c.42% for 2009, significantly ahead of the 30% reduction announced in November 2008. The Group's balance sheet remains strong, with a reduced year end net debt level of under $10m.
Jack Cooney, CEO of Somero commented:
"The effect on construction activity of the sudden and extensive worldwide shutdown of the credit markets was mitigated by the swift action taken in November to further reduce costs. We recognised the impact on our customers very early in the process and have made significant reductions to our cost structure in the US and Europe. The Group is now at an appropriate size given the current market, however, despite major cost reductions, we continue to invest in China and the Middle East to take advantage of growth opportunities.
"Our ability to move quickly has allowed us to renegotiate our loan agreement to provide significant flexibility in the coming years. Despite unprecedented times, the management remains confident that the fundamentals of the Group remain strong and that the strategies in place combined with the Group's market leading position will result in continued long-term growth for Somero."
Somero will report full year results in early May 2009.
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| Juliet Clarke / Erwan Gouraud | |
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| Collins Stewart | +44 (0)20 7523 8000 |
| Piers Coombs |