Germany helps Cramo second quarter results
13 August 2013
Cramo said the uncertain market conditions meant that it was unable to give guidance on its full year sales although it forecast that EBITA profits for the year were likely to improve.
The company’s second quarter saw pre-tax profits rise 64.7% to €10.1 million on broadly flat revenues of €160.1 million. It’s fastest growing territory was Germany, where there was a 12.2% increase in revenues to €20.5 million after a slow first quarter.
Sales in the second quarter were 0.8% down at €160.1 million on the same period in 2012, although after accounting for the divestment of the Russian business (into the joint venture company Fortrent) sales actually rose by 1.7%.
After a difficult weather impacted first quarter, demand picked up in the Spring, with fleet utilisation rates improving quickly halfway through the period and rising to “a good level” towards the end of the quarter.
However, Vesa Koivula, Cramo’s CEO, said; “it is still too early to estimate whether we reached the low point of the business cycle in our main markets at the end of the winter season.”
Sales in Germany rose by 12.2% for the quarter, with EBITA profits up significantly to €1.4 million. Revenues were up by 17.1% in Norway, mainly due to acquisitions made in late 2012, while sales in Sweden increased 3.7%.
In Denmark, sales fell by 12%, reflecting the restructuring there which more than halved the depot network to 7 locations, although profitability improved. Sales in Finland were down 3.7%
“After the difficult first months of the year, the demand for equipment rental picked up in the spring, as expected”, said Mr Koivula, “At the same time we continued the implementation of our strategy, that is: the roll-out of a uniform business model and efficient processes. When combined with cost savings and efficiency measures completed earlier, this improved our profitability in the second quarter.”
He continued; “Our aim is to improve profitability in all of our markets but especially in Norway, Denmark and Central Europe. Development during the first months of the year shows that we are on the right track.”