Q2 sales up 41% for Cramo with nearly all segments in growth
By Maria Hadlow04 August 2011
Cramo second quarter sales are up 41.4% with profitability up in all business segments except Norway. Sales increased from €114 million in Q2 20010 to €161.1 million in 2011 and half year results were up 41.8% to €305.4 million - 27% of which was organic growth.
Profitability (EBITA) for January-June improved from the previous year, amounting to €16.8 million (€5.3 million in 2010) and representing 5.5% (2.4% in 2010) of sales.
In Finland and Sweden, the results were good, and Central Europe (Theisen Group) saw an upturn into profit during the period. In Norway, demand for rental services increased more slowly than expected, in addition to which unprofitable projects were recognised in the second quarter. However, the performance of the Norwegian operations improved towards the end of the period. In Denmark and Eastern Europe the result was negative but showed a clear improvement compared to the previous year.
Cramo Group's president and chief executive officer, Vesa Koivula said, "The second quarter of 2011 developed in line with our expectations. The demand for rental services and the price levels continued to develop favourably.
"Construction activity continued to increase and profitability improved in Finland and Sweden, our largest market areas. New housing starts are at a good level in Finland and in Sweden, and the outlook for office and commercial construction is improving.
"I am particularly pleased with the improved performance of our Central European business segment, which was formed in connection with the acquisition of Theisen Group. In Germany and Austria, business developed according to our expectations. It seems that the acquisition occurred at the right time.
"Cramo's Danish and Eastern European operations continued to improve their performance, and our objective is to achieve a positive result in the second half of the year. I also expect to see the Norwegian operations to turn back into profit."
Cramo specialises in equipment rental services, as well as the rental and sale of modular space. It is one of the industry's leading service providers in the Nordic countries and Central and Eastern Europe, at the end of the financial year, Cramo Plc operated in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Russia, Germany, Austria, Switzerland and Hungary.
In January, Cramo acquired 100% of the share capital of the German rental group Theisen Baumaschinen AG, and Theisen Group was consolidated into Cramo Group on 1 February 2011.
Some 90% of Theisen Group's sales are generated in Germany. The Group also has operations in Austria, Switzerland and Hungary. Cramo says the integration of Theisen into the Group has progressed as planned. Cramo expects the acquisition to be earnings-neutral for Cramo Group in 2011 and earnings-accretive thereafter.
In June, Cramo bought 100% of the shares in Tidermans, a Swedish rental operator in the Gothenburg region, and Stavdal, a Norwegian rental company operating in the Oslo region. Both companies were consolidated into the Group as of 30 June, 2011.