Cramo profits up despite tougher end to 2012

By Murray Pollok08 February 2013

Cramo experienced a difficult final quarter of the year as construction markets reacted to economic uncertainty, with its German, Finnish and Danish businesses reporting revenues down by between 14 and 20%.

In Denmark the company reduced its depot network from 18 to 7 locations in the final quarter - to concentrate on branches in large towns and cities where it has a strong position – and reported sales down 20.3% to €8.9 million.

Despite the revenue fall in Finland profits there increased by 6.2% to €6.5 million, with Sweden (Cramo’s biggest market) and Eastern Europe (Baltic States, Russia, Poland, Czech and Slovakian Republics) also posting good results.

Overall the business reported fourth quarter revenues down 4.3% to €184.6 million with operating profits up 12.9% to €17.3 million. Sales for the year were 1.3% up at €688.4 million, with operating profits increased by 18.6% to €64.4 million.

Cramo said the economic outlook remained highly uncertain and that it was not giving guidance on group sales in 2013.

Vesa Koivula, president and CEO of Cramo Group, said the company was focused on profitability; “Considering the market situation, we can be satisfied with our results. They indicate that at Cramo we have the skills and ability required for succeeding in difficult circumstances.

“The focus on ensuring profitability has meant that investments and personnel have been reduced in those markets where demand has declined most radically.

The differences in market development have been striking. In our main markets of Finland and Sweden, construction activity turned negative, whereas in Norway, Russia and Estonia it grew quite strongly.

"I am especially satisfied with the good development of profitability in Finland, Norway and Eastern Europe.”

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