Aggreko share price: Third-quarter underlying revenue rises six percent

on Nov 14, 2014
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iNVEZZ.com, Friday, November 14: Aggreko Plc (LON:AGK) has been the biggest riser in the FTSE 100 index so far this morning following the release of a third-quarter trading update that seemed to satisfy the market, even though revenues had been hit by unfavourable currency movements.

The company’s Americas business posted significant growth in the three months ended September 30, and the EMEA (Europe, Middle East and Africa) division also showed improvement from last year. However, revenue from the Asia, Pacific and Australia (APAC) region declined nine percent due to the impact of the slowdown in the mining sector on Aggreko’s Australian operations, and volume and pricing pressure in Indonesia.
In today’s trading, Aggreko shares rose 2.8 percent to 1,585.00p as of 10:05 UTC. The company’s share price has fallen 11.5 percent since the start of the year.
*h*Third quarter*h*
Aggreko said today that trading since its interim results in August had been in line with its expectations. The group’s third-quarter underlying revenue increased six percent from the corresponding period a year earlier. However, reported revenues were significantly impacted by adverse currency movements, which led to a three-percent decline.

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On an underlying basis, Aggreko’s Americas operations had grown 15 percent in the third quarter, despite a slow temperature control season, the company said. Meanwhile the EMEA region grew revenues by four percent year on year.
Aggreko’s Local business division revenues increased by four percent in the quarter, delivering year-on-year growth in North America, the UK, parts of the Middle East and other markets, but it experienced more challenging trading conditions in Australia, Brazil and much of Continental Europe.

Power Projects grew 10 percent in the period, in line with the company’s expectations.
Looking ahead, the company reiterated its full year guidance for underlying trading profit similar to 2013.
*h*Analysts on Aggreko*h*
According to the Financial Times, the 18 analysts offering 12 month price targets for Aggreko have a median target of 1,685p, with a high estimate of 2,000p and a low estimate of 1,240p. As of November 11, 2014, the consensus forecast amongst 38 polled investment analysts covering Aggreko suggests that investors should hold their position in the company. The same consensus estimate has been maintained since the sentiment of investment analysts deteriorated on October 11, 2013, the FT notes.
**As of 10:47 UTC buy Aggreko shares at 1592.00p**
**As of 10:47 UTC sell Aggreko shares at 1589.00p**

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