11th Mar 2025 15:57
(Alliance News) - Somero Enterprises Inc on Tuesday declared a smaller dividend as profit and revenue declined, amid a decline in sales in North America and Australia.
The Fort Myers, Florida-based provider of equipment and training for advanced concrete floor placement said pretax profit fell 28% to USD23.8 million in 2024 from USD33.2 million in 2023.
Revenue declined 9.5% to USD109.2 million from USD120.7 million.
The company said North American sales were down 7.0% on-year in 2024, to USD82.2 million, mostly due to lower sales of Boomed screeds.
Somero said: "The long-standing shortage of skilled labor necessitates automation, and work productivity continues to drive demand for our products in the territory. Our US customers report good activity levels and healthy project backlogs, and there was an improvement in trading conditions over H1."
In Australia meanwhile, sales fell 34% to USD6.6 million in 2024 from a record high of USD9.9 million in 2023.
In Europe, sales edged down 3.3% to USD14.6 million in 2024 from USD15.1 million in 2023. "In a market where demand for environmentally friendly products is strong, the introduction of Somero's first electric screed, the S-940e, has been particularly well received," the company said regarding Europe.
The company highlighted "solid" trading in the second half, boosted by revenue from new products and improved weather conditions.
Somero declared a dividend of 16.9 US cents per share, down 27% from 23.19c a year ago.
Further, it announced a supplemental dividend of 4.1c, down 45% from 7.4c.
The company approved a 2025 share buyback programme of up to USD2.0 million, the same as in 2024 and 2023.
"In 2024, there was an uptick in competitive activity in the European market, which represents 13% of Somero's total revenue, including increased presence from a Chinese manufacturer. As of late, the topic of tariffs has become more acute and could have an impact on imports from China. It is uncertain whether the overall heightened competitive activity is attributable to the natural cycle of market participants or something more secular," it added.
Looking ahead, Chair Larry Horsch said: "Taking all factors into account, revenues and earnings before interest, tax, depreciation and amortisation are expected to show moderate growth on 2024, with corresponding improvements in profitability and cash generation."
Somero shares fell 5.4% to 263.00 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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