Somero Enterprises, Inc. Provides Earnings Guidance for the Full Year of 2017 and 2018
January 12, 2018 at 02:00 am EST
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Somero Enterprises, Inc. provided earnings guidance for the full year of 2017. As a result of the strong second half performance, the Board now expects 2017 revenues will be slightly ahead of market expectations of $84.7 million, EBITDA will be comfortably ahead of market expectations of $26.0 million driven by the volume increase and effective operating cost management, while net cash at 31 December 2017 is expected to be not less than $18.5 million, well ahead of market expectations of $16.5 million. The Company continues to make good progress in the implementation of the strategy to grow through product innovation and geographic expansion, with key contributions to 2017 growth coming from $1.0 million in new product revenues and nearly $5.0 million in net increased revenues from non-US territories. Second half 2017 trading in four of the Company's six regions grew compared to second half of 2016, led by strong contributions from North America, Europe and the Company's Rest of World territories.
Following record results in 2017, the Board is confident in the Company's ability to deliver another year of profitable growth in 2018 as the underlying market conditions in core markets remain positive and as the Board continues to see significant growth opportunities in other territories. The Board's confidence is further supported by recently enacted pro-growth US corporate tax law changes which are expected to stimulate increased economic activity in the Company's largest market.
Somero Enterprises, Inc. designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring and placing equipment, related parts and accessories, and training services around the world. Its products are machinery used in the process of horizontal concrete placement. Its product categories include Lightweight Screeds, Ride-on Laser Concrete Screeds, Boom Screeds, Skyline Stationary Laser Screeds, Materials Placement, and Software Packages. Its Lightweight Screeds include Mini Screed C and CopperHead XD 3.0. Its Ride-on Laser Concrete Screeds consist of S-485 Laser Screed and S-940 Laser Screed. Its Boom Screeds include S-28EZ Laser Screed, S-PS50 Laser Screed, and others. Its Skyline Stationary Laser Screeds consist of SkyScreed 36 (SkyStrip). Its Materials Placement includes Broom + Cure Machine, Somero LineDragon, and STS-11M Topping Spreader. Its software packaging includes 3-D Concrete Profiler System, SiteShape System, and Somero Floor Levelness System.