27.07.2017

Tougher quarter for Cramo

After a strong start to the year Finnish International rental group Cramo has reported a more modest second quarter.

Looking first at the six months, revenues were two percent higher than last year at €340.9 million, held back somewhat by a strong Europe compared to the local currencies of some of the groups operations. Pre-Tax profit jumped 26 percent to €39.7 million.

Moving to the second quarter revenues slipped back a more than half a percent to €178 million, but pre-tax profits continued to improve, rising five percent to €23.8 million.

Chief executive Leif Gustafsson said: The market environment has remained favourable in both of our business divisions and good performance in equipment rental continued. In the second quarter, sales grew in local currencies in equipment rental, despite of negative impact of timing of Easter. In modular space, rental sales continued to increase compared to last year, however the growth was still below our expectations especially in Finland.”

“Profitability improved in equipment rental business division in all segments. In modular space, profitability improved from the first quarter, but was still on a lower level than last year. Strict actions to improve operative processes continued in order to secure better profitability going forward. In June, we strengthened our market share in modular space in Denmark by acquiring assets of Just Pavillon. The acquisition complements our modular space fleet well.”

“In July, we announced the divestment of Danish equipment rental operations. These steps are fully in line with Cramo’s strategy to strengthen its position in markets where the company has the potential to be the market leader and where we see the best returns on capital employed. Looking ahead, I expect demand to continue to be on a good level for the rest of the year both in equipment rental and modular space.”