Cramo's Business Review for January-March 2018

Cramo Plc    Business Review 25 April 2018, at 9.00 am (EET)

Cramo's Business Review for January-March 2018

Strong first quarter for both divisions - KBS Infra included from 1st of March




KEY FIGURES AND RATIOS (MEUR)1-3/181-3/17Change %2017
Comparable EBITA*23.119.717.3%120.0
% of sales13.2%12.1% 16.5%
% of sales12.7%12.1% 16.5%
Comparable profit for the period*15.712.624.6%83.3
Profit for the period14.812.617.6%84.2
Comparable earnings per share (EPS), EUR*0.350.2824.3%1.87
Earnings per share (EPS), EUR0.330.2817.4%1.89
ROCE, %12.3%11.6% 11.9%
Comparable ROCE, %*12.3%12.4% 11.9%
ROE, %16.9%15.3% 15.6%
Comparable ROE, %*16.9%16.8% 15.4%
Net debt / EBITDA1.831.68 1.65
Net interest-bearing liabilities430.1381.312.8%382.3
Gross capital expenditure (incl. acquisitions)76.535.4115.9%213.9
of which acquisitions/business combinations41.00.6 9.4
Cash flow from operating activities20.842.3-50.9%186.5
Cash flow after investments-30.55.4 33.1
Average number of personnel (FTE)2 5812 5700.4%2 538

* Items affecting comparability, see page 12-13


The first quarter result shows a good start to the year 2018. The Group’s organic sales growth accelerated to 10.4% driven by both business divisions. Comparable EBITA improved by 17.3% to EUR 23.1 million. Profitability improved within all the Group’s segments. During Q1, we successfully completed the acquisition of the German construction site logistics company KBS Infra. At the same time, the strategic assessment of the Modular space business is proceeding as we are analysing a possible separation of the divisions into two legal entities.

The demand for equipment rental stayed on a good level in all segment countries. Particularly ER Scandinavia delivered strong first quarter results in a market environment where the growth seems to be slowing down. In Sweden, sales increased by 9.9% in local currency compared to the previous year, supported by large, ongoing projects. The performance of ER Central Europe was supported by the acquired KBS Infra, which was consolidated in the figures for the first time from the 1st of March onwards.

Year 2017 was challenging for our Modular Space division. We focused on improving project management and profitability especially in Finland and Germany, to increase the efficiency and utilise the growth potential of the whole segment. I am pleased to see that the reorganisational changes among other implemented actions paid off. The Modular Space division showed a robust 14.2% organic rental sales growth and EBITA improved by 35.2%. Finland contributed particularly positively to EBITA growth, while the performance of Germany was not yet on a satisfying level.

The growth in the Swedish construction market, especially in the residential sector and Stockholm metropolitan area, is flattening out from a high level, but we still see active markets in other regions in Sweden. We continue to benefit from large projects outside the residential sector. We are constantly following our investment levels in order to adapt to changes in demand.


The construction market outlook for the year 2018 is mainly positive in Cramo’s operating countries. Growth is still expected, but in many countries the growth that accelerated in 2017 is predicted to level out. According to the latest Euroconstruct and Forecon estimates, the construction market will grow approximately 3.5% in Sweden, Norway and Finland and 1.0–1.5% in Austria and Germany. For the Czech Republic, Slovakia, Hungary and Poland, Euroconstruct estimates on average 9.3% market growth. Forecon’s construction market growth estimate for the Baltic states is 3.4%. The Russian construction market is expected to grow by 5%. The local Sverige’s Byggindustrier is projecting 2% growth for the Swedish construction market in 2018 according to their latest estimate in March. The Confederation of the Finnish Construction Industries kept their forecast unchanged, indicating that the construction market in Finland will grow by approximately 2%, supported by residential and repair construction.

The European Rental Association (ERA) forecasts that the equipment rental market will grow in 2018 in all of Cramo’s operating countries that are within the scope of ERA’s forecast. Forecon estimates the equipment rental market to grow by approximately 7–8% in Finland, 3% in Sweden and 2% in Estonia and Lithuania in 2018.


In 2018, Cramo will publish its Half Year Financial Report and Q3 Business Review as follows:

• 26 July 2018: Half Year Financial Report for January-June 2018

• 26 October 2018: Business Review for January-September 2018


A conference call for analysts, investors and press will be held on 25th April 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 0360 and provide a conference code 573513. 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


Leif Gustafsson
President and CEO

Further information:

Mr Leif Gustafsson, President and CEO, tel: +358 10 661 10, email:
Mr Aku Rumpunen, CFO, tel: +358 40 556 3546, email:
Mr Mattias Rådström, SVP, Communication, Marketing and Investor Relations, tel: +46 70 868 7045, email:


Nasdaq Helsinki Ltd.
Main media


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 2,500, Cramo's consolidated sales in 2017 was EUR 729.5 million. Cramo shares are listed on Nasdaq Helsinki Ltd.

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Cramo Q1 2018_English.pdf