Randon consolidates growth and sees expansion in Automotive Division

With expectation of economic stability in the country, Randon, largest manufacturer of road equipment in South America, approaching a more sustainable level of sales. At the same time, the auto business is expected to continue gaining relevance in the group. "In 2018, we managed to surpass our expectations. Grow revenue and our organic investments were slightly below the estimated, "said the Chief Financial Officer of Randon, Paulo Prignolato, in teleconference for journalists. The company achieved net income of $151.7 million in 2018, high R of 224.8% over the previous year. It was the second consecutive positive annual results of the company, which faced, along with the entire sector, a serious crisis between 2014 and 2016. Randon assigns the demand growth to factors such as the ageing of the fleet, interest in historical and minimum yield positive agricultural. "There is more confidence and the market were robust numbers", points Prignolato according to roadway equipment manufacturers Association (Anfir), in 2018 the trailers and semi-trailers segment recorded an increase of almost 80% in plates issued, totaling more than 44000 units. The number, however, is still lower than the record of 70000 achieved in 2013. To the President of the entity, Norberto Fabris, this volume was artificial. "It was a bubble stimulated by the conditions of loans from the BNDES [National Bank for economic and Social development]. Around 60000 trailers and semi-trailers would be more suitable for our market. " The Chairman of the Board of Directors of Randon, Alexandre Randon, estimates that the market began to return to acceptable levels. "Not yet reached what was, after terrible years. It is now expected that the economy and the infrastructure sector grow to boost sales. " For the company, also caused positive impact the expectation of a more vigorous economic upturn and the repositioning of the freight prices after the truckers ' strike. "The price brought a breath after sales, load generators are buying own fleet. But we do not believe it to be a long-term trend, because the price of shipping is the market, "the company's Vice President, Daniel Randon. For 2019, the projection of the company's revenue growth again. "There's a lot of expectation related to the change of Government and the adoption of important reforms. If they occur, Brazil will have a different pace of growth and attract investments. We expect a better performance than the 2018, "said Chief Executive Officer of Randon, David Randon. The Anfir estimates a 10% to 15% of plates issued this year, totaling of 99000 to 104,000 units. In the first quarter of 2019, trailers and semi-trailers registered 71.86% growth as compared to the same period in 2018. Auto parts Daniel Randon explained that most of the company's revenue was from auto-parts Division, strengthened by heated demand for commercial vehicles. "The implements creates more value, but it is more. The trend is the auto parts business grow, because it's more global. " Randon is seeking to expand the relevance of the revenue of this segment generated abroad, through direct exports and new business outside of Brazil. In 2018, the company made acquisitions in Argentina, Uruguay and India. "The purchases are motivated by the prospect of expanding the product portfolio and the internationalization of the company", explains Daniel Randon. Asked about the impact of Argentina crisis on sales of implements, the Executive stressed the diversification of company. "We are very strong in the auto parts segment and also in other markets. Our model is robust. It is clear that the crisis in the neighboring country causes problems, but on the other hand, the performance of the American units is positive and restores partially this impact. "