Vantaa, Finland, 2017-10-25 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc Business Review 25 October 2017, at 9.00 am (EET)
Cramo's Business Review for January-September 2017
SIGNIFICANT EVENTS DURING THE THIRD QUARTER
|KEY FIGURES AND RATIOS (MEUR)||7-9/17||7-9/16||Change %||1-9/17||1-9/16||Change %||2016|
|% of sales||20.9%||21.1%||16.5%||15.1%||15.6%|
|% of sales||21.1%||21.1%||16.5%||15.1%||15.0%|
|Comparable profit for the period||29.2||28.3||3.5%||60.6||53.2||14.0%||75.6|
|Profit for the period||29.8||28.3||5.6%||61.2||53.2||15.1%||68.6|
|Comparable EPS, EUR||0.66||0.64||4.4%||1.37||1.20||14.4%||1.70|
|Earnings per share (EPS), EUR||0.67||0.64||5.5%||1.38||1.20||15.0%||1.54|
|Comparable ROCE, %||11.9%||10.7%||11.4%|
|Comparable ROE, %||15.9%||14.6%||14.9%|
|Net debt / EBITDA||1.73||1.93||1.77|
|Net interest-bearing liabilities||403.0||404.7||-0.4%||387.0|
|Gross capital expenditure (incl. acquisitions)||55.3||59.7||-7.4%||159.3||159.5||-0.1%||207.3|
|Cash flow from operating activities||47.5||51.2||-7.3%||116.8||114.0||2.5%||172.2|
|Cash flow after investments||22.3||0.0||13.7||-9.5||7.3|
|Average number of personnel (FTE)||2,549||2,551||-0.1%||2,550|
ROCE = EBIT (rolling 12 months) / capital employed (average start and end of period)
CEO LEIF GUSTAFSSON:
During the third quarter, the group organic sales growth in local currencies was 5.5% and comparable EBITA increased by 3.2%. Equipment rental division’s result was stable; organic sales increased and market demand continued on a good level in our main markets. Comparable EBITA remained close to the previous year’s level. During the quarter, we completed the divestment of Danish equipment rental operations and our Latvian and Kaliningrad operations.
In modular space, we had a high number of deliveries, which resulted in strong sales growth and profit improvement. We are still not satisfied with our performance in modular space and see a lot more potential within the division. We have determined actions to improve project control and other operative processes in order to increase the profitability of the modular space business further.
Looking ahead, the outlook for modular space rental market development is positive and we continue to invest for growth. Furthermore, in equipment rental, the market is still expected to grow but at a slower pace.
In Cramo countries, the construction market outlook for the rest of the year 2017 is mainly positive. The construction market analysts Euroconstruct and Forecon estimated in June that the construction market will grow approximately 2% in Finland, Denmark and Germany, and 6% in Norway. In Lithuania, the market is expected to grow 1% and in Estonia 3%. In the Czech Republic, the growth for total construction market is expected to be flat compared to previous year. The Russian construction market is expected to decline 2% in 2017. For Sweden, the Euroconstruct estimates 8% growth. The local Sverige’s Byggindustrier estimates 12% growth for 2017 and 4% for 2018 according to latest October estimate. Confederation of Finnish Construction Industries increased its latest estimate in October and forecasts that the construction market in Finland will grow approximately 4% or at minimum in line with the Finnish economy. Especially residential construction in Finland grows stronger, which sets a positive outlook also for next year. European Rental Association (ERA) forecasts that the equipment rental market will grow in all of Cramo’s operating countries that are within the scope of ERA’s forecast.
CRAMO’S FINANCIAL REPORTING IN 2018
Cramo Plc’s Financial Statements for 2017 will be published on Friday, 9 February 2018.
The Annual report containing the full financial statements for 2017 will be published in electronic format in week 10/2018.
The Annual General Meeting 2018 will take place on Wednesday, 28 March 2018 in Helsinki.
Cramo will publish its Half Year Financial Report and two Business Reviews in 2018 as follows:
A conference call for analysts, investors and press will be held on 25th October at 11.00 am (EET). To participate in the conference call please dial in 5-10 minutes prior to the start time on +358 (0)9 7479 0404 and provide a conference code 9347823. The conference call will be held in English. Questions can be asked after the presentation.
A replay of the conference call will be available later on the same day at www.cramogroup.com.
President and CEO
Mr Aku Rumpunen, CFO, tel: +358 10 661 10, +358 40 556 3546
Mr Mattias Rådström, SVP, Communications, Marketing and Investor Relations, tel: +46 70 868 7045
Nasdaq Helsinki Ltd.
Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in about 300 depots in fourteen countries. With a group staff around 2,600, Cramo's consolidated sales in 2016 was EUR 712 million. Cramo shares are listed on Nasdaq Helsinki Ltd.