Demand for Rocla industrial trucks grew in the first quarter of 2005 but price increases in raw materials kept operating profits down.
For the quarter ended March 31, industrial truck sales, at EUR21 million (USD27.1 million), grew 12.8 per cent from last year's comparable quarter. However, operating profit for industrial trucks decreased 13.8 per cent from EUR1.5 million (USD1.9 million) to EUR1.3 million (USD1.7 million) for the quarter.
Rocla attributed the growth in demand to the "good performance" of its distribution network, particularly in Western Europe, on-schedule deliveries to North America and the continued growth of the Rocla Rent's truck rental business.
"Manufacturing at the Järvenpää plant adjusted to growing volumes with flexibility. Growth is sustained by expansion investments undertaken at the factory and by the new mast production line," the company said in a statement.
"The price of raw materials and the rate of the US dollar have a large impact on the development of group net sales and profits. Should raw material prices remain at current levels and the weakening trend of the dollar subside, net sales for the full year are expected to grow with the net result being close to last year's."
In early February, the business operations of Rocla's dealer in St Petersburg, Russia, were transferred to Rocla's wholly-owned subsidiary OOO Rocla RUS.
The company is optimistic the Russian market will be favourable for business development.