14.02.2011

Cramo returns to profit

Finnish based international rental company Cramo has reported a strong fourth quarter pick up and a return to profitability.

Revenues for full year were €492.1 million, 10.2 percent up on 2009, while pre-tax profits came in a €4.8 million, compared to a loss of €34.2 million last year.
The fourth quarter was even stronger with revenues climbing by 26.8 percent to €146.4 million which boosted pre-tax profits from a loss in 2009 of €27.5 million to a profit of €8.37 million this year.

Profitability for the year was strong in Finland and Sweden, in line with expectations, while Norway moved into profit in the third quarter. The story was quite different in In Denmark and Central/Eastern Europe which remained ‘in the red’, However Denmark came close to breaking-even in the fourth quarter although still seven percent lower in revenue terms than in 2009.

Capital expenditure for the year increased substantially from €31.9 million to €86.2 million. The company says that it plans to increase this in 2011 based on the increasingly positive results.

The company says that it expects construction and equipment rental to grow strongly in most of the markets in which it operates. With three to four percent growth in the Nordic countries, four to six percent in Central and Eastern Europe, including Russia but not the Czech Republic which is expected to decline and Poland and Estonia which are predicted to see double-digit growth rates.

Chief executive Vesa Koivula said: “As we entered the year 2010, we knew it would be challenging. In the first half, we continued to adjust our operations to the declining demand. The markets saw an upturn in the summer, at the same time, we renewed our strategy and targets, aligning them with the new situation. In accordance with our targets.”

“Expectations of construction growth in 2011 vary strongly in Europe. The southern European countries and Ireland are facing an economic crisis, and construction outlook in these countries is poor, while the outlook is positive for the German-speaking countries, the Nordic region and most Central and Eastern European countries. I am confident that the timing is favourable for Cramo’s recent acquisitions, since the outlook for the equipment rental market is positive in these market areas.”