05.05.2015

Cramo bounces back

Finnish international rental company Cramo has posted a positive first quarter with higher revenues and profit.

Total revenues for the three months increased 4.8 percent to €147.1 million, while last year’s pre-tax loss was converted to a profit of €4.9 million this year. All regions, apart from Norway and Denmark improved. In Finland, sales grew 5.8 percent, in Sweden by 12.2 percent, in Central Europe 9.3 percent and in Eastern Europe 9.6 percent. While general equipment rental improved 2.1 percent, modular space/cabin rental jumped over 22 percent.

In terms of profitability, Finland, Sweden, Norway and Denmark all reported good results, while Central and Eastern Europe improved, but remained in negative territory. The Russian-Ukrainian joint venture with Rami- Fortrent - also improved. The company is maintaining its original full year forecasts.

Chief executive Vesa Koivula said: “The start of 2015 has been promising for Cramo In a seasonally weak first quarter, our sales grew and results improved compared to the corresponding period last year. The positive development started in the autumn of 2014, thanks to both our own performance improvement actions and the improved market situation. In the beginning of 2015, the market situation continued to strengthen particularly in Sweden, as well as in Central Europe and in many locations in Eastern Europe”.

“During the first quarter, our sales grew in all our business segments, except for Norway and Denmark. Product area Modular Space grew strongly in the quarter. Our EBITA margin increased from 3.1 to 6.9 percent, and improved in all of our business segments with the exception of Finland where it was slightly lower than in the previous year. It is particularly encouraging to witness the strong profit development in Sweden and the turn of the Danish operations to profit. In Norway, we also managed to improve our profitability, thanks to cost savings implemented last year. In Central Europe, the result still remained negative, as expected, but fleet utilisation rates improved year-on-year”.

“In order to further improve profitability, we continue the Group’s performance improvement actions in 2015, especially with regard to direct costs. ‘For a Great day at Work’, our customer promises related to the Cramo Story programme, contribute to strengthen our position as the first choice for customers. The adoption of our Performance Management Model will further improve our productivity. With the current market outlook, I believe that Cramo group’s sales growth will continue and our profitability will improve compared to the previous year.”

Vertikal Comment

All in all a very good result from Cramo with signs that 2015 could see a return to the good times, or at least set the tone for 2016. If the company has truly got to grips now with its Thiesen acquisition – which is now the Central Europe sector, it could face a very bright few years, especially as the Nordic markets begin to move into more positive growth again.

It is though still too early to tell if this is just a blip or if the business is in really good shape now and 'ready to rock'. The next quarter will be more telling.