Bematech expects 5% growth in automation

- Friday, June 10, 2011

Bematech expects 5% growth in automation

Brazilian IT firm Bematech expects the domestic industrial automation products segment to grow 5% this year, news service Agência Estado reported.

Though projected revenues were not disclosed, the company said Ebitda margin should rise from 19% in 2010 to 21-24% by 2014. To that end, the company has strengthened its portfolio and distribution.

The company aims to expand its market share in business automation from the current 20%, according to Bematech hardware director Eros Jantsch. The business automation segment currently moves 1.5bn-2bn reais (US$938mn-1.25bn) in Brazil, according to an internal company study, while Bematech ended 2010 with sales of around 326mn reais.

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Earlier this year, Bematech closed new distribution agreements in Latin America via an exclusive partnership with US company ScanSource.

The business automation segment in Brazil is expected reach 1.4bn reais this year in sales of bar code readers, RFID equipment, scanners, data collectors and software, according to figures from Brazil's association of commercial automation, Afrac.

Bematech posted a consolidated net profit of 4.69mn reais (US$2.88mn) in the first quarter of 2011, down 55.9% compared to same period a year ago.