Finnish multi-national rental company Cramo’s consolidated sales increased by 23.4 percent from January through September, with a 26.4-percent jump for continuing operations, excluding the Dutch business operations Cramo divested in April. Organic growth was 23.9 percent. Volume was boosted by favorable market conditions, a higher rental equipment penetration rate, positive price development and successful equipment investments in the main market area. Total volume for the nine-month period was €352.7 million (about U.S. $523 million), up from €258.8 million last year.
EBITA increased 39.9 percent year over year, and diluted earnings per share jumped 56.8 percent year over year, from 88 cents in last year’s first nine months to $1.38 for the same period this year.
Cramo expects economic development to continue strongly. Growth in construction activity along with major infrastructure projects in industry and the public sector is expected to fuel growth in equipment rental. Nordic construction is expected to continue its growth although the growth rate may stabilize at a slightly lower level, the company said Central and Eastern Europe are expected to see sustained strong growth in construction, with rental growth outpacing general construction because of increasing rental penetration.
Cramo currently operates in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic and Russia.
The equipment rental business reported sales of €303.6 million (about U.S.$450 million), a 25.4-percent year-over-year jump.
In other Cramo news, last week the company said Cramo Sverige AB, the Swedish wholly owned subsidiary of Cramo PLC acquired the entire share capital of two Swedish high-reach rental companies, Kumla Lift AB and Hyrcenter I Skovde AB, with estimated combined 2007 rental volume of €3.15 million (about U.S. $4.7 million).
Cramo is based in Helsinki, Finland, and trades on the Helsinki Stock Exchange.