09.05.2011

Cramo up 42%

Finnish based international rental company Cramo has reported a 42 percent rise in first quarter revenues while almost halving its losses.

Revenues for the quarter were €144.2 million 42 percent higher than for the same quarter last year, however in local currencies the increase was 31 percent, and this year’s revenues include €10.6 million of revenues from German based Thiesen added at the end of last year. Without this revenues were up almost 32 percent. Pre-tax losses were cut from €6.6 million last year to €3.9 million this year.

While all existing sectors – Finland, Sweden, Norway Denmark, Eastern Europe posted revenue increases – ranging from 48 percent in Finland down to nine percent in Denmark, Eastern Europe and Denmark continue to lose money as does the new Thiesen business – now called Cramo Central Europe - which lost €1.2 million.

The company says that it is not changing its forecasts for the rest of the year, but does see a return to growth. Capital expenditure, excluding acquisitions, was €18.6 million, compared to just €3.5 million in the same period last year.

Chief executive Vesa Koivula said: ”The start of the year 2011 has been in line with our expectations. The integration of Theisen Group has progressed as planned, as has the implementation of the Lemminkäinen outsourcing agreement. As we expected, these significant growth investments have nevertheless had a negative impact on our profitability in the first quarter. This negative impact will no more affect the development in the other quarters of the year.”

“Demand for equipment rental has picked up further in all of our market areas. Prices have also started to recover from the low downturn levels. In Finland, the number of new housing starts is at a good level and the outlook for commercial and office construction is improving. In Sweden, too, construction activity is expected to increase at a rate exceeding the previous year’s level, thanks to strong economic growth. I am confident that we will see positive developments in other market areas as well.”

“The Central European business segment, formed in connection with the acquisition of Theisen, will be of particular focus of interest in the current year. What is also new is our position as the second largest equipment rental company in Europe. I believe this will strengthen our market position in all of our market segments. Taken together, the recovery in the equipment rental market, the streamlining measures we implemented during the downturn and our stronger market position provide a solid starting point for the favourable development of our business”.