Tracbel increases investments foreseen until the end of 2011
Valor Econômico
Tracbel, one of the largest Brazilian distributors of machinery and heavy equipment, has increased the package of investment scheduled for the 2009-2011 period, to R$ 130 million (US$ 81.3 million), due to the expressive growth in the businesses, especially in the areas of infrastructure and mining. The mining company initially planned to invest R$ 100 million (US$ 62.5 million) in the operation in the three year period, among the purchase of equipment for hire, opening of branches, enlargement of the headquarters and training.
The resumption of the sales and rental of equipment after the economic crisis was, however, stronger than expected and Tracbel decided for the increase of the investments. This year, the investments should stay between R$ 40 million and R$ 50 million (US$ 25 million and US$ 31.3 million), according to the Vice-President of the company, Luiz Gustavo Pereira. And the earnings should get close to R$ 1 billion (US$ 625 million) in 2011, with growth of 28% compared to last year. "We see good perspectives in the area of heavy construction. But other segments, such as mining and steel, should also pull the results", says the Executive.
Representative of the great names of the industry of equipment - Volvo Construction Equipment (VCE), Clark, Massey Ferguson, among others -, last year, the company had net income of R$ 658 million (US$ 373.9 million), with growth of 42% in the annual comparison, which more than made up for the downturn in the business seen in 2009. "After 2008 have been so strong, the earnings fell nearly 15% in the next year, before the crisis", said Pereira. "The sales grew in volume, but the average ticket fell". In 2009, they were 500 employees. Until the end of this year, the team should get to 850 professionals, with more than 100 hires as of March. A company with a family profile - the founder, Luiz Gonzaga de Magalhães Pereira, holds the Presidency of the group -, Tracbel has bet on the professionalization of the management a few years ago. "But we are still a conservative company that makes investments with own resources", adds Pereira.
The only rule is not good for investments in the area of hire of machinery and equipment, business considered complementary. In this case, the company tends to seek resources from financial institutions or banks of the very manufacturers. Tracbel currently has a fleet of 200 units, which are offered as additional products. Hence the small participation of the area in the earnings of Tracbel. Last year, they were R$ 27 million (US$ 15.3 million) of the total earned by the company and the expectation is growth - not by chance, part of the resources that will be invested this year will be intended for the purchase of new equipment for lease. "But our business is to sell", he stresses out.
The opening of branches is also on the agenda of the group. Today, there are 26 units in 10 Brazilian States. Throughout the year, there will be at least eight new houses. Partnerships with new suppliers are also on the radar. Right at the beginning of the year, Tigercat and Log Max entered the forestry portfolio of Tracbel.