Cramo’s consolidated sales and EBITA in the first half of 2007 increased in all market areas, totaling €223.7 million (about U.S. $300 million), up from €180.3 million for the same period last year, a 24-percent jump. Sales of continuing operations, not including the Dutch business operations that were divested in April, grew 26.7 percent, with organic growth accounting for 24.5 percent. Sales were boosted by favorable market conditions, positive price development, a higher rental utilization rate, and successful equipment investments in the company’s main market areas.
The company expects a favorable business environment for the next 12 months. Growth in construction activity coupled with major infrastructure projects in industry and the public sector should continue to fuel rental growth. The company expects Nordic construction to continue to grow but on a slightly lower level, while it expects Central and Eastern Europe to provide sustained strong construction growth. With increasing penetration of rental services, Cramo expects rental growth to outpace construction growth.
Second quarter volume totaled €116.4 million, a 20.3-percent year-over-year increase from €96.7 million for the same period last year. Rental accounted for €100.2 million, with Cramo’s remaining volume coming from the modular space business. Operating profit for equipment rental for the second quarter was €23.6 million.
The equipment rental business reported January-June volume of €191.4 million, a 25.7-jump from last year’s €152.3 million total, with the strongest growth in Central and Eastern Europe. Cramo operates in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, Czech Republic and Russia, with a network of 250 branches.
Cramo, based in Helsinki, Finland, acquired three companies in the second quarter, two in Finland and one in Estonia. The company expects to continue its growth pattern in the second half of 2007.