The Asia/Pacific region continues to generate solid growth figures for Nilfisk-Advance while the company has also made significant investment in the emerging BRIC+MT markets. Nilfisk-Advance has just reported a ‘realised growth of 11% in 2nd quarter 2011. Organic growth represented 8%, the remainder being acquisitions. For first half 2011 nominal growth was 9%, of which 6% was organic growth.’
Nilfisk-Advance’s revenue for the 2nd quarter 2011 was AUD$304 million (DKK1651 million) compared with AUD$282 million (DKK1532 million) for the same 2010 quarter. For the first half year total revenue reached AUD$589 million (DKK3203 million) compared with 2010’s AUD$543 million (DKK2950 million).
The company noted that, ‘Organic growth for the EMEA region (Europe, Middle East and Africa) was 8% in relation to 2nd quarter 2010 and amounted to 6% for 1st half 2011. The 1st quarter growth trend thus continued unchanged.
‘2nd quarter organic growth for the Americas was 8%, and total organic growth for 1st half 2011 was thus 3%. The progress achieved in this region is due to a combination of improved supply capability and satisfactory order intake, particularly in the industrial segment. Competition in the United States remains high and restraint is particularly evident in the public sector.
‘In the Asia/Pacific region the positive 1st quarter trend continued with organic growth of 9% for the 2nd quarter and 13% for 1st half 2011. If revenue for 2010 is adjusted for the phasing out of a major customer in 2010/2011, organic growth for 2nd quarter 2011 is 17% and for 1st half 2011 21%.
‘Initiatives by Nilfisk-Advance in the emerging BRIC+MT markets (Brazil, Russia, India, China + Mexico and Turkey) consisted of the opening of two new sales subsidiaries in Russia, strengthening of management in Brazil, organisational expansion in Turkey by 30%, and acquisition of two Chinese dealerships to improve direct market coverage.’
Some 3% of Nilfisk-Advance’s revenue is invested in product development and the company expects to have launched about 30 new products by close of 2011.
For example, the second quarter saw an introduction to the US market of Nilfisk-Advance’s first industrial hybrid sweeper-scrubber, the CS 7000, which runs on both diesel and battery power. The hybrid motor is environment-friendly and energy-saving and is designed for both outdoor and indoor service.
Over the past six to seven years Nilfisk-Advance has focused on creating a new outdoor business based on compact and mid-size cleaners. With last July’s acquisition of French development company Jungo Voirie, Nilfisk-Advance has strengthened its outdoor sweeper portfolio. Nilfisk-Advance also acquired JungoJet production from the German manufacturer Hecker & Brian.
Together with the first quarter Egholm acquisition, ‘these new acquisitions are compatible with Nilfisk-Advance in both customer and product terms as well as culturally. Against this background, Nilfisk-Advance has set up a dedicated Outdoor Division aimed at significant growth, increased market share and strong earnings in the area of compact and mid-size outdoor cleaning equipment.’