31.10.2012

Cramo lifts profits

Finnish international rental company Cramo has reported its third quarter results which show revenues for the nine months to the end of September up 3.4 percent to €503.8 million, while pre-tax profits jumped 47 percent to €32.2 million. Capital expenditure for the period dropped from €223.3 million last year to €99.4 million so far this year.

Looking at the third quarter revenues were largely flat compared to last year at €182.4 million, although pre-tax profits surged 18.5 percent to €23.7 million. The results by region are quite varied with Finland falling 14.5 percent in terms of revenues, but at the same time profits were up almost two percent. This due to the disposal of the company’s cabin business.

Denmark bounced back strongly in the quarter, while Central Europe – mostly Germany and Austria slipped a further 4.7 percent in terms of revenues while profits dipped over 20 percent.

Chief executive Vesa Koivula said: “In the third quarter, Cramo achieved a good result, considering the market situation. The impact of adjustments initiated in the second quarter started to show in our operations and I believe that we can witness even more extensive effects in the future.”

“Market-specific differences in the demand for equipment rental have increased. In our main markets of Finland and Sweden we have made preparations for weakening demand. In Norway, we have been able to move from improvement of operational efficiency to development of customer service, whereas in Central Europe, the theme for the current year is still harmonisation of operations.”

“Even though Cramo does not operate in Southern Europe, a region struggling with economic difficulties, the general uncertainty has postponed construction and industrial investments and decisions in Cramo’s market areas, too. In many Eastern European countries, the markets are again undergoing drastic changes. In Poland, the earlier strong growth in construction activity has now turned into negative development, and as a result, we have adjusted our operations both in Poland and in some other Eastern European countries.”

“However, in some of our markets, such as in Norway, Estonia and Russia, demand is growing. In Russia, operational environment for foreign companies is generally improving, thanks to the country’s WTO membership, for instance.”

“In September, we defined our new long-term financial targets. After a period of strong growth, we now concentrate on profitability and stable profit distribution “.