AmeraMex International Signs $28 Million Contract to Ship Heavy Equipment to Africa and Reports Revenue for the First Quarter of 2009
CHICO, CA — May 19, 2009 — AmeraMex International, Inc. (OTC: AMMX), a provider of heavy equipment to stevedoring, infrastructure construction and mining companies, today reported financial results for its first quarter ended March 31, 2009. For the quarter, the company reported revenue of $2.3 million and a net loss of $169,097, or a loss per share of $0.0006. AmeraMex captures revenue upon shipment of equipment to its customers.
“The economic downturn has delayed orders from our domestic customers in the fourth quarter of 2008 along with the first quarter of 2009,” said AmeraMex CEO Lee Hamre. “We are disappointed but not surprised by first quarter revenues. We expect orders to pick up in U.S. market over the next several months as the stimulus monies are distributed to construction companies for job creation and the much needed repair of highways and bridges.”
The company also announced that it signed a $28 million contract to ship heavy equipment to Nigeria. The customer, a large construction company located in Lagos, Nigeria, is currently in the process of finalizing financing for the project. Due to competitive concerns, the customer remains unnamed.
AmeraMex also announced it signed a partnership agreement with the construction company. Under terms of the agreement, the two partners will build and operate a heavy equipment company in Lagos, Nigeria. The new entity will sell new and used heavy equipment into the Nigerian market. The shop will stock parts for all makes and models of heavy equipment as well as provide a supporting service organization for customers.
To date, 12 acres of land have been purchased on which to build the facility, and bids for the construction project are being accepted. “The project has been delayed for the last several months due to the decline of oil prices,” said AmeraMex CEO Lee Hamre. “With oil prices trending up, we anticipate breaking ground on the facility within the next 6 months.”
Nigeria’s exports of oil and natural gas—at a time of peak prices—have enabled the country to post merchandise trade and current account surpluses in recent years. Under the United Nations (UN)-sponsored National Millennium Goals for Nigeria, a long-term economic development program covering the years 2000 to 2015, Nigeria has committed to achieve a wide range of ambitious objectives involving poverty reduction, education, gender equality, healthcare, the environment, and international development cooperation.
Hamre noted, “Many countries in Africa, and Nigeria in particular, are development stage countries. With the export of its oil and natural gas, Nigeria has embarked on significant infrastructure projects to support and improve the amenities for its growing population.”
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About AmeraMex International
AmeraMex International sells, leases, and rents heavy equipment to companies within four industries: construction (light and infrastructure), shipping, mining and logging. AmeraMex’s largest product line is specialized container handling equipment that enables stevedoring companies to quickly and efficiently load and offload container and general freight ships dockside. AmeraMex, with customers in North America, South America, Asia, and Eastern Europe, has over 30 years of experience in heavy equipment sales and service and inventories top-of-the-line equipment from manufacturers such as Taylor Machine Works Inc. and Terex Heavy Equipment. For more information visit the AmeraMex website, www.AMMX.net .
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such, may involve risks and uncertainties. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations, are generally identifiable by the use of words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, potential future performance, perceived opportunities in the market, and statements regarding the Company’s mission and vision. The Company’s actual results, performance, and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements.
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