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    Cramo Posts Solid Nine Months, Cuts Spending As Economy Slows

    Nov. 14, 2008
    Cramo Group, multi-national rental company based in Helsinki, Finland, hit its targets through the first nine months of 2008 with consolidated sales of €436.5 million (about U.S. $545.6 million), a 23.8-percent increase compared to the first nine months of 2007. Cramo jumped 20.7 percent in the third quarter, with €155.7 million in revenue (about U.S. $194.7 million), compared with €129 million for the same period of 2007.

    Cramo Group, multi-national rental company based in Helsinki, Finland, hit its targets through the first nine months of 2008 with consolidated sales of €436.5 million (about U.S. $545.6 million), a 23.8-percent increase compared to the first nine months of 2007. Cramo jumped 20.7 percent in the third quarter, with €155.7 million in revenue (about U.S. $194.7 million), compared with €129 million for the same period of 2007.

    Growth was fueled by acquisitions, equipment investments and expansion to new branches and markets. In the third quarter, the strongest equipment rental sales growth was achieved in Central and Eastern Europe, 44.4 percent, with a 41.7-percent growth in rental volume in Western Europe.

    EBITDA for the first nine months was €82.3 million (about U.S. $102.9 million), compared with €69.8 million in the year-ago period. Profitability improved in equipment rentals in Finland and Sweden as well as in the modular space business, but weakened in Western, Central and Eastern Europe. However, profitability in Central and Eastern Europe improved during the third quarter, despite a significant market slowdown in the Baltic countries.

    Cramo officials said economic uncertainty has increased since mid-September, and expects negative development in construction volumes in 2009, particularly in the Nordic region and the Baltic countries. The company anticipates that the slowdown’s impact on demand for rental services will be less severe than construction overall, because of increasing penetration rates, increased equipment outsourcing and growth in demand for rental-related services.

    Cramo said that after investing heavily in expansion fleet the past few years, the company has begun an “investment holiday” for the balance of 2008 and 2009. Instead of investing in new equipment, Cramo will focus on optimizing the use of its existing fleet.

    The equipment rental business reported volume of €382.0 million (about U.S.$475.8 million) in the first nine months, a 25-percent increase compared with the same period in 2007.