Helsinki, Finland-based international rental company Cramo increased revenue in the third quarter by 39.3 percent from €130.4 million in the third quarter of 2010 to €181.6 (about U.S. $249.5 million). EBITA doubled from €15.2 million in the year-ago quarter to €30.5 million in the recently concluded quarter, while EBITA margin grew from 11.6 percent to 16.8 percent.
For the first nine months of 2011, revenue grew 40.9 percent from €345.7 million a year ago, to €487 million (about U.S. $669 million) this year. Organic growth jumped 24.2 percent. EBITA more than doubled from €20.4 million a year ago to €47.3 million this year.
Cramo said all its business segments achieved positive EBITA in the third quarter. In Finland and Sweden, results were good, and profitability continued to improve in Central Europe. In Norway, Denmark and Eastern Europe, the business swung into profit, with sales and profit development particularly strong in Eastern Europe. In Russia, Cramo’s business has developed favorably in all geographic areas — Moscow, St. Petersburg, Kaluga and Yekaterinburg — and Cramo has reinforced its market position as a partner for western constructors and industrial investors.
Looking forward, economic uncertainty has increased in Europe, which could impact construction growth, however Cramo still considers rental services to be a growth industry. The company said it will cut its fleet investment and increase the efficiency of fleet optimization between market areas.
“The third quarter of 2011 was positive for the Cramo Group,” said Vesa Koivula, president and CEO. “The demand for rental services and the price level continued to develop favorably, and we achieved a positive result in all of our business areas. I am particularly delighted to report strong sales growth and profit improvement in Eastern Europe, as well as the positive development of our Central European segment, which was formed in connection with the acquisition of Theisen Group.
“The expansion of the modular space product area over the past few years, as well as several outsourcing agreements, have improved the stability of Cramo’s business.”
Koivula added that the integration of Tidermans and Stavdal, acquired in June, has progressed as planned.