Cramo takes €22 million impairment charge
Finnish based international rental company Cramo, is taking a €22 million asset write down/impairment in its fourth quarter results.
The non-cash impairment charge concerns the goodwill and intangible assets of its operations in Latvia, Lithuania and the Czech Republic.
The action is the result of the current low business volumes these markets, which the company says still have “ample potential for long term growth.”
The company says that the write down will not affect its guidance for 2009 and that cash flow after investments will be positive with improving EBITA in the second half as compared to the first.
In an unrelated move Cramo Finland has sold its diamond drilling
and floor grinding business to Kuusakoski Oy. The deal is due to complete
in February, the price has not been disclosed.
The business had revenues in 2009 of €3.7 million and includes 45 employees who retain their seniority as employees of Kuusakoski.
Tatu Hauhio, managing director of Cramo Finland, said: ”According to our strategy we will now concentrate on rental and rental related services. I am pleased that we reached an agreement with Kuusakoski Oy, which possesses excellent resources to further develop the business”.