Somero Enterprises Inc on Thursday reported a lower profit as revenue declined due to a fall in North America revenue.
The Fort Myers, Florida-based laser-guided concrete levelling machinery company said pretax profit in the first half of 2023 was $15.6 million, down 30% from $22.4 million a year prior. Revenue fell 14% to $58.9 million from $68.5 million.
‘North America revenues declined 24% as the conversion of continued favorable non-residential construction activity into trading was impacted by delayed project starts and pauses, primarily due to elevated interest rates, and tightened bank lending standards,’ Somero said.
The company maintained an interim dividend of 10 US cents per share.
The earnings report comes two days after Somero announced that its president John Yuncza stepped down from his role, with Chief Executive Officer Jack Cooney taking on the role on an interim basis until a successor has been found.
Looking ahead, the company expects improvement to trading in the second half in the US compared to the first half. CEO Jack Cooney said: ‘Contributions from key international markets and positive feedback from customers, reinforces the board’s belief that 2023 results will fall in line with market expectations. With a healthy financial position, we remain committed to making sound strategic investments to deliver strong results and cash flows to our shareholders.’
Somero Enterprises shares fell 4.1% to 279.99 pence each in London on Thursday afternoon.
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