Cramo improves profitability in flat year

Cramo reported improved profitability in 2013 – particularly in the second half of the year - despite slightly lower sales and what it called the “weak economic situation”.

Pre-tax profits for the full year rose by 17.4% to €51.9 million on sales that were 5.1% lower at €657.3 million. In local currencies, and excluding the impact of the divestments and the pooling of its Russian business with Ramirent, revenues were actually up by 1.5%.

EBITDA profits for the year were down 3.2% to €173.8, giving an EBITDA margin of 26.4%

Ramirent said its results were good in Finland, Sweden and Eastern Europe, with improvements in Norway. Its Danish operation also became profitable. Profitability improved in the final quarter in Finland, Norway, Denmark and Eastern Europe and its modular space business maintained “a high level in all Nordic countries.”

Vesa Koivula, president and CEO of Cramo Group, said; “Our work to improve operational efficiency in recent years shows results. Despite the decrease in sales and the weak economic situation, our relative profitability improved in 2013 particularly in the second half of the year.

After a strong expansion in earlier years, efficiency improvement has primarily taken the form of uniform business practises and efficient processes across the Group. In 2013, we made good progress in the implementation of consistent operating methods in all of our countries of operation, and our reformed range of services was well received among customers.”

Mr Koivula said market forecasts for this year were favourable, but growth rates were likely to remain moderate; “I am expecting the rental market to resume growth in the second half of the year at the latest.”