European rental giant Cramo posted €331.3 million (about U.S. $492.5 million) in revenues for the first nine months of 2009, about 24.1-percent below revenue for the same period last year. Because the exchange rate of several European currencies weakened against the Euro, in local currencies, sales dropped 17.6 percent.
Sales in the third quarter were €115.3 million (about U.S. $171.4 million) compared with €155.7 million for the same period in 2008, a 26-percent plunge.
During the third quarter, markets were seen stabilizing, the company said, with some early signs of recovery. However, because of the cyclical nature of the construction industry and low investment levels in industry, Cramo expects the group’s economic operating environment to continue on a low level for the remainder of 2009. Government actions to stimulate economic recovery in the various sectors of construction — particularly in civil engineering — will balance some of the recessionary effects. In the modular crane business, long-term agreements will moderate the cyclical fluctuations in Cramo’s operations.
The company expects demand for equipment rental might continue to decrease in many markets in the first half of 2010. The company expects a greater likelihood of an upswing in the second half of 2010, although significant uncertainties remain.
Cramo said its gross capital expenditure in 2009 will be about €30 to €35 million (about U.S. $45 million to $52 million).
Cramo is based in Helsinki, Finland, and has operations in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia.