26.10.2017

An improving quarter for Cramo

Finnish international rental company Cramo has reported a positive third quarter in terms of revenues and profits.

Looking first of all at the nine months to the end of September, revenues were €532.8 an increase of 2.7 perecent on this time last year, even after allowing for divestments during the quarter. Scandinavia saw revenue rise 1.1 percent for the nine months, while Finland and Eastern Europe ended the period 3.1 percent higher. Central Europe improved 4.1 percent, with Germany flat offset by good growth in Austria, Czech Republic and Slovakia. Pre-tax profits for the period were 15 percent higher at €76.5 million.

Capital expenditure was identical to last year at €159.3 million. But net debt was cut from €1.93 billion to €1.73 billion,

Looking at the third quarter revenues were up €3.8 percent to €191.9 million, with Scandinavia rising almost one percent to €93.2 million, this after the Danish business was sold to Loxam at the end of August.
Finland and Eastern Europe ended the quarter one percent higher at €39 million. But Central Europe saw revenues fall by more than seven percent to €21.9 million. . Pre-tax profits were six percent higher at €36.8 million.

Chief executive Leif Gustafsson said: “During the third quarter, the group organic sales growth in local currencies was 5.5 percent and comparable EBITA increased by 3.2 percent. Equipment rental division’s result was stable, organic sales increased and market demand continued on a good level in our main markets. During the quarter, we completed the divestment of Danish equipment rental operations and our Latvian and Kaliningrad operations.”

“Looking ahead, the outlook for modular space rental market development is positive and we continue to invest for growth. Furthermore, in equipment rental, the market is still expected to grow but at a slower pace.”

Vertikal Comment

The pace of growth has slowed a little at Cramo, but it continues to do well and is making solid progress as it changes the organisation. With all the disposals and other shake ups it will be interesting to see how the company emerges from this year and what it plans for 2018.

The company has clearly learnt a few things from its mistakes and will be unlikely to repeat them in the years ahead. One hopes..
Expect the company to end the year on or slightly ahead of forecast.