São Paulo – Exports by Brazil’s Randon conglomerate climbed 2.5% last year, with the share of its foreign sales going to the Middle East slid. The road implements maker grossed USD 151.6 million from foreign sales in 2016 and USD 155.4 million in 2017. The number comprises all of the group’s businesses, which include vehicle and auto parts manufacturing operations.
The share of Randon exports going to the Middle East slid from 4.5% in 2016 to 3.1% in 2017. Its biggest markets were the Mercosur and Chile, which took in 46.3% of exports in 2017, a bigger share than in 2016. Next came the NAFTA countries, Europe, Africa, Asia, South and Central America, the Middle East and Oceania.
Randon said in a report that despite the hike in exports, some aspects of the international scenario remained troublesome. Sales to Africa suffered due to weak oil prices, and domestic crises in some countries were also a factor. The share of foreign sales that went to Africa slid from 6.9% in 2016 to 3.7% in 2017.
The company said foreign sales increased for the following businesses: Master (brakes), JOST (couplings), Castertech (foundry and technology), vehicles (trucks, backhoe and front-end loaders) and Suspensys (auto parts). Overall, vehicle exports dropped by 1.6%, while auto parts exports were up 4.6%.
The numbers do not include revenue from overseas manufacturing operations. Randon has several arms outside Brazil, ranging from industrial facilities and an assembly to offices and distribution centers in countries including United States, Mexico, Chile, Peru, Argentina, Uruguay, Colombia, Germany, Kenya, South Africa, China and India. In the Arab world, Randon has an office in the United Arab Emirates and assembly and CKD units in Algeria and Egypt.
Randon’s overseas units grossed USD 84.3 million last year, up from USD 72.8 million in 2016. Domestic and overseas revenue came out to USD 239.7 million, up 6.8% and in line with the company’s forecast of grossing USD 240 million.
Randon is the leading trailer and semi-trailer maker in Latin America, and one of the global industry leaders. Last year saw it export 2,071 semi-trailers, down 13.8% from 2,404 in 2016. The conglomerate imputed the drop to struggling sales to Africa, despite its increased foothold in South America.
Randon saw BRL 4.2 billion in gross revenue last year, up 14.6% from 2016. Consolidated net revenue was BRL 2.9 billion, up 11.9%, with net profit reaching BRL 46.7 million. Randon Strategy, Investor Relations and Corporate Finance manager Esteban Mario Angeletti said in a webcast to investors this Wednesday (14) that this recovery, timid though it may be, was expected.
Vice executive president Daniel Randon said 2017 started slow, but business picked up in the second half. “This was a year of harvest, but still a year of planting,” he said. The group is optimistic regarding 2018, despite existing challenges. “We see the need to explore new horizons and to seek internationalization and expansion,” Daniel Randon said during the webcast.
*Translated by Gabriel Pomerancblum
