![](https://ferronordic.com/public/resources/images/_heroImage/Dresden-people-12.jpg)
Interim report 1 January – 31 March 2024
Q1 2024: A strong start in the US
FIRST QUARTER 2024
- Revenue increased by 86% to SEK 1,172m (631)
- Operating profit increased by 247% to SEK 21m (-14)
- Operating margin increased to 1.8% (-2.2)
- The result for the period increased by 939% to SEK 70m (7)
- Basic earnings per share* amounted to SEK 4.83 (0.46)
- Cash flows from operating activities amounted to
SEK 124m (-126)
*Before dilution.
![Lars Corneliusson](https://ferronordic.com/public/resources/images/_articleImage/Lars-corneliusson.jpg)
Lars Corneliusson, CEO Ferronordic
First quarter 2024
“The first quarter of 2024 was our first full quarter with Rudd Equipment Company. Our expansion to the US has started well. During the first quarter, revenue amounted to SEK 699m with an operating profit of SEK 60m, corresponding to an operating margin of 8.6%. We gained market share, especially in the important segment of articulated haulers, boding well for future sales of service and spare parts. After four months in the US, we are even more positive about the future opportunities. Rudd is already a well-managed and profitable company, but we see opportunities to both grow and improve profitability by, in the long term, gaining market share, increasing machine population and capturing a larger share of potential aftermarket sales.
In Germany, the situation remains challenging. Demand is weak and customers are postponing fleet renewals. Activity in our workshops, however, remained high and aftermarket sales increased by 9%. The work to reduce costs and create a leaner organisation continued in the quarter. We continue to develop our aftermarket business and invest in e-mobility. Our business for sustainable transport solutions has grown its rental fleet to 40 electric trucks. Inventory decreased but remains high. Work to normalise inventory in Germany continues. Revenue in Germany decreased by 20% to SEK 439m. Operating profit decreased to SEK -12m.
Although Kazakhstan’s economy continued to grow, the market for construction equipment declined. Our sales of new and used machines decreased, while the aftermarket business was more stable. We expect the inventory position to normalise during 2024. Revenue in decreased to SEK 34m, or 3% of the Group’s turnover. The operating result decreased to SEK -3m.
For the Group, revenue increased by 86% to SEK 1,172m, mainly due to the consolidation of the American operations. The operating result for the Group amounted to SEK 21m. The Group's net debt of increased to SEK 1,542m, mainly as a result of the acquisition of the American operations.
We are optimistic about our expansion into the US and the opportunities there. The US is the world's second-largest market for construction equipment. Demand is supported by a dynamic economy and extensive support programs for infrastructure investment. The German economy currently looks weak. We are taking measures to make our organisation more efficient and resilient. We believe in continued strong demand in the aftermarket business and are optimistic about the long-term potential in the German market. We continue to develop our operations in Kazakhstan.”