Cramo makes €22m impairment on Central/Eastern Europe business

Cramo has made a one-off €22 million impairment loss for its Central and Eastern Europe businesses as a consequence of low volumes in Latvia, Lithuania and the Czech Republic.

The one off charge on goodwill and intangible assets is being charged in the final quarter of 2009. Cramo said the charge would have no impact on its cash flow and will not impact on its guidance for 2009.

"The decision is a consequence of present low business volumes in Latvia, Lithuania and the Czech Republic", said the company, "In the long-term, the Group considers there to be ample potential for growth in these markets.

Cramo's Central and Eastern Europe business represent around 10% of Cramo's revenues and comprises its operations in Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia.