06.05.2009

Cramo slips 15.7%

Finnish based international rental company Cramo, has reported first quarter revenues of €106.9 million, down 15.7 percent on the same period in 2008.

The company attributes the fall to weaker currencies in central and Eastern Europe, at constant exchange rates the fall in revenues would have been just 6.7 percent. Other factors include lower utilisation and rates in all of its markets apart from Norway.

The net effect of the almost €20 million drop in revenues was to turn a profit of €11.3 million last year into a loss of €6 million this year.

The company spent just €12 million in capital expenditure in the first quarter, compared to €58 million last year and most of this went on ‘modular space’ which continues to outperform its other rental items.

Cramo says that it does not expect any significant improvement in its businesses this year and as a result is continuing with its cost reductions, which include a 20 percent headcount reduction.

The company says that it will have positive cash flow throughout the year and that it has sufficient availability on its agreed lines of credit. It recently sold a €50 million open ended hybrid bond. Click here to see Bond report