Mainly due to the foreign market and the cast and machined products segment, order entry in the 2Q16 grew 75.1% compared to 2Q15
Despite the lasting low level of investment and the constant volatility in Brazil, Romi has achieved EBITDA of R $ 5.7 million in the second quarter of 2016.
Santa Barbara d’Oeste, July 2016 – Romi, leader in the Brazilian machinery and equipment industry, with 86 years of history and almost 160 thousand machines installed worldwide, presents the financial results achieved in the second quarter 2016.
With R$ 150.1 million in revenue in the second quarter 2016 Romi obtained gross margin of 23.4% and EBITDA margin (Earnings Before Interest, Taxes, Depreciation and Amortization) of 3.8%.
Order entry of machine tools and plastic processing machines was R$ 65.5 million in the second quarter 2016, 17% higher than in the same period of 2015, exports being the main reason for this growth. B+W machinery order entry grew 754.5% in the same comparison mainly due to projects obtained in the Middle East and Asia. Order entry in raw and machined cast iron parts, driven by higher demand of large castings, increased by 5.2% compared to the second quarter of 2015. The Company ended the period with an order book of R$ 317.4 million.
Romi keeps working on an even lighter structure and on an even more agile and flexible production. These measures have enabled stocks to remain at normal levels, the default under control and a positive operating cash flow, which reduced the net debt by 7.3% in 2016.
The domestic market accounted for 64% of Romi’s revenue in the second quarter of 2016, confirming the gradual and sustainable growth of the Company in the foreign market, since this share was 69% in the same period 2015.
According to Luiz Cassiano Rosolen, Romi’s CEO, “We are focusing our efforts on meeting the needs of our customers with agility and quality, both in Brazil and abroad. Thus, we are reaching a good volume of orders in all business units, despite the current volatility. The management focused to offer increasingly productive solutions to our customers and steady work of generating shareholder value go together so we can have more and more success in Brazil and abroad.”
Investments in 2016 totaled R$ 8.3 million, which are intended in part for maintenance, productivity, flexibility and competitiveness of Romi’s production plant.