Flat sales in third quarter for Cramo

Cramo’s revenues were flat at €182.4 million in the third quarter of the year with operating profits up 2.4% to €28.2 million.

The company – which has just announced a joint venture with Ramirent covering Russia and the Ukraine - said the market situation was “satisfactory” despite the economic uncertainty.

Cramo said that differences in market conditions in its operating areas were increasing, with weakening demand in its main markets of Finland and Sweden but growth in Norway, Estonia and Russia.

Its business in central Europe (comprising the Theisen operation in Germany, Austria and Hungary) saw a 4.7% fall in revenues to €20 million in the quarter, with EBITDA profits down 21% to €2.3 million. Cramo said; “Economic uncertainty has decreased the demand for civil engineering services [in Germany].”

Vesa Koivula, president and CEO of Cramo Group, said; “Even though Cramo does not operate in Southern Europe...the general uncertainty has postponed construction and industrial investments and decisions in Cramo’s market areas, too.

“In many Eastern European countries, the markets are again undergoing drastic changes. In Poland, the earlier strong growth in construction activity has now turned into negative development, and as a result, we have adjusted our operations both in Poland and in some other Eastern European countries.

The company’s gross capital expenditure on during the third quarter was €34.4 million, which was 9.1% lower than the same period in 2011. CapEx for the nine months to 30 September was €99.4 million, which compares to €223.3 million in the previous year.