Cramo Plc Stock Exchange Release 11 July, 2019 at 19.00 pm (EET)
Cramo Plc estimates its comparable EBITA (excluding Cramo’s former Modular Space division) for Q2 2019 to be lower compared to Q2 2018 and comparable EBITA for the full year 2019 to decrease from 2018
Cramo Plc ("Cramo") estimates that its comparable EBITA (for Cramo’s continuing operations, excluding Cramo’s former Modular Space division) for Q2 2019 will be in a range of EUR 14–16 million and thus estimates the full year comparable EBITA for 2019 to decline compared to 2018.
Despite of lower profitability, cash flow (EBITDA-organic capex) is expected to be significantly higher in 2019 compared to 2018.
The deviation in profitability is mainly a result of weaker development in Sweden. As stated in the Q1 2019 Business Review, disclosed on 2 May 2019, Cramo’s performance in Sweden has been weaker than in 2018 due to a decrease in and the timing of larger industrial projects. Except for the larger industrial projects, the operational performance in Cramo’s business in Sweden remains stable at the 2018 level. Additionally, the quarterly sales in Sweden were negatively affected by the fact that there were two business days less during Q2 compared to 2018. Also, in Finland, performance didn’t return to the expected level during the second quarter.
To ensure the Group’s profitability in the short-term, to increase market share, fleet availability and streamline the cost structure, various customary short-term sales efforts, as well as cost and capital efficiency measures are being taken. More information on these short-term performance improvement actions will be provided on 15 August 2019, when Cramo will publish its January–June half year financial report.
Following the completed demerger on 30th June 2019, Cramo is now a full-service equipment rental provider. To ensure Cramo's competitiveness in the long-term and to capture the full potential of the focused equipment rental business, a group-wide performance enhancement program (including Group structure optimisation, lowering the cost base and strengthening the sales organisation) will be launched. More information about the long-term operational efficiency program will be given on 12th September 2019 during Cramo’s Capital Markets Day, where the company's new strategy and financial targets will be presented.
Cramo has not previously disclosed any estimates for 2019.
Cramo has disclosed unaudited illustrative financial information for its continuing operations for 2018 and Q1 2019 in a stock exchange release on 4 June 2019. In 2018, comparable illustrative EBITA was EUR 94.8 million and in Q2 2018 it was EUR 22.4 million. Cash flow (EBITDA-organic capex) was EUR 74.0 million in 2018.
President and CEO
Nasdaq Helsinki Ltd
Cramo is one of the leading European equipment rental services companies with revenue of EUR 632 million in 2018, serving approximately 150,000 customers through around 300 depots across 11 markets with a full range of machinery, equipment and related services. Cramo enjoys solid market position in all key markets and has a strong focus on the most sophisticated customers primarily within the renovation and new-build construction, industrial and public sector end-markets. Cramo shares (CRA1V) are listed on Nasdaq Helsinki Ltd.