No respite for Grove in final year figures

There were no surprises in the final year results of Grove Holdings, announced on 9 November. With chairman and chief executive Sam Bonanno departing just weeks before, it was clear that the figures were going to be down. So it proved, with the company recording a pre-tax loss of $27.1m, following 1998’s $10.9m pre-tax loss.

Net sales for the year to 31 October 1999 were down $88.8m, or 10.2%, to $781.2m. Gross profit fell 20% to $147.8m. Adjusted earnings before interest, tax, depreciation and amortisation was down from $87.1m in 1998 to $45.0m in 1999. Margins improved in the fourth quarter of the year and the sales income of $223.5m was up about 8% on the third quarter, but still down on the $239m achieved in the fourth quarter of 1998.

Bonanno’s successor as chairman and CEO, Jeff Bust, said: “While we have made some progress in the fourth quarter, we still have much to do. We are very confident about our new products and new product plans. These products are allowing us to help improve our customers’ businesses. However, our overall cost structure remains too high. Reducing cost structure, along with quickly bringing new products to market, will be our focus going forward.” Management consultants from the George Group received $6.75m during the course of the year for their efforts in helping to turn Grove around.