22.02.2008

Cramo rises 23%

Cramo, the Finish based international rental company has reported its results for 2007. Revenues increased by 23.5 percent to €496.4 million while pre tax profits climbed by 34 percent to €75.8 million.

The company says that while the year as a whole has been strong, the pace in the last two months picked up as some of its initiatives, such as its deal with Skanska Denmark, came into play.

Gross capital expenditure during the year was €175.5 – 57 percent higher than in 2006. most of the spend was on the equipment for the company’s rental fleet.

Sales by country are as follows: Finland €113.4 million (22.4 percent of Total), Sweden €248.5 million (49.2 percent) Norway/Denmark €85.2 million (16.9 percent) and Other Europe €58.3 million or (11.5 percent).

Outlook

Cramo says that in spite of economic concerns in the financial markets brisk demand for rental services is expected to continue in its main markets. Growth in construction activity coupled with major infrastructure projects in the industry and the public sector will continue to fuel growth.

Nordic construction is expected to continue its growth, but at a slightly lower rate than in previous years. Central and Eastern Europe are expected to see sustained strong growth in construction, although this growth is decelerating in the Baltic countries.

It also expects equipment rental to expand at a faster rate compared to general growth in construction, due to factors such as increasing penetration rates, increased equipment outsourcing.

Cramo says that growing demand in all of its main markets will require increased capital expenditure growth in 2008. The company is forecasting an 18 percent revenue growth in 2008 with a similar improvement in profitability.