2013-05-03 08:00:00 CEST
2013-05-03 08:00:05 CEST
REGULATED INFORMATION
Cramo Oyj - Interim report (Q1 and Q3)
Cramo’s Interim Report 1 January–31 March 2013
Difficult quarter, cost cutting effects materialising
Vantaa, Finland, 2013-05-03 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc Interim
Report 3 May 2013, at 9.00 am Finnish time (GMT+2)
Cramo's Interim Report 1 January-31 March 2013
Difficult quarter, cost cutting effects materialising
1-3/2013 highlights (year-on-year comparison in brackets):
-- Sales EUR 148.5 (160.0) million, the change was -7.2%. Sales change
excluding divested operations and restructuring in Russia -5.3%
-- EBITA EUR 6.4 (10.6) million and EBITA margin 4.3% (6.6%); comparable EBITA
excluding non-recurring items EUR 6.9 (8.4) million, or 4.7 (5.2) per cent
of sales
-- Earnings per share EUR -0.04 (0.04); comparable earnings per share
excluding the effect of non-recurring items EUR 0.01 (-0.01)
-- Return on equity (rolling 12 months) 6.9% (7.3%)
-- Cash flow from operating activities EUR 17.9 (17.8) million, cash flow
after investments EUR -18.9 (17.1) million
-- Gearing 69.7% (77.4%)
-- The joint venture with Ramirent in Russia and Ukraine was launched on 1
March 2013 and the business acquisitions in Norway were completed on 1
February 2013
-- Hybrid bond redeemed on 29 April 2013, related finance cash flow
improvement approximately EUR 4 million per year
Guidance for 2013 unchanged:
Referring to the market outlook, which pictures a high uncertainty in Cramo's
market areas, the Board does not consider it prudent to give a guidance on
Group sales either growing or declining in 2013. However, the Group's business
demonstrates a good continuity over time. In 2013, already implemented and
on-going efficiency measures are likely to yield an improvement in EBITA margin
percentage compared with the previous year.
KEY FIGURES AND RATIOS (MEUR) 1-3/13 1-3/12 Change % 1-12/12
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Income statement
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Sales 148.5 160.0 -7.2 % 688.4
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EBITDA 29.7 36.2 -17.8 % 179.6
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EBITA 1) 6.4 10.6 -39.8 % 78.0
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% of sales 4.3% 6.6% 11.3%
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Operating profit / loss (EBIT) 1.7 7.6 -77.8 % 64.5
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Profit / loss before tax (EBT) -2.3 2.4 44.3
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Profit / loss for the period -1.8 1.8 38.7
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Share related information
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Earnings per share (EPS), EUR -0.04 0.04 0.93
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Earnings per share (EPS), diluted, EUR -0.04 0.04 0.93
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Shareholders' equity per share, EUR 11.22 10.54 6.4 % 11.58
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Other information
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Return on investment, % 2), 3) 6.7 % 7.3 % 7.3 %
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Return on equity, % 2), 3) 6.9 % 7.3 % 7.5 %
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Equity ratio, % 2) 46.6 % 44.5 % 48.6 %
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Gearing, % 2) 69.7 % 77.4 % 65.1 %
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Net interest-bearing liabilities 2) 364.9 374.7 -2.6 % 346.9
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Gross capital expenditure (incl. 46.2 24.3 90.1 % 125.1
acquisitions)
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of which acquisition/business combinations 31.2 0.8
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Cash flow after investments -18.9 17.1 62.2
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Average number of personnel (FTE) 2,505 2,721 -7.9 % 2,664
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Number of personnel at period end (FTE) 2,402 2,736 -12.2 % 2,555
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1) EBITA is operating profit before amortisation and impairment resulting from
acquisitions and disposal
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2) Full year 2012 key figures have been calculated before reclassification of
Russian business as assets and liabilities to be transferred to joint venture
according to IFRS5
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3) Rolling 12 month
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SUMMARY OF FINANCIAL PERFORMANCE IN JANUARY-MARCH 2013
During the first quarter of 2013, Cramo Group's consolidated sales were EUR
148.5 (160.0) million, showing a decrease of 7.2 per cent. In local currencies,
sales decreased by 9.3 per cent.
Sales were weakened by the divestment of Cramo's modular space production and
customised space rental businesses in Finland in March 2012 as well as by the
transfer of the Russian operations to a joint venture on 1 March 2013. Sales
change excluding divested operations and restructuring in Russia was -5.3 per
cent. Furthermore, the weak economic situation that has prevailed in Europe for
a long time has affected construction activity and demand for rental services
in many of Cramo's operating countries. Sales were also impaired by prolonged
winter conditions which postponed the start of many construction projects.
EBITA was EUR 6.4 (10.6) million, or 4.3 (6.6) per cent of sales. Comparable
EBITA excluding non-recurring items was EUR 6.9 (8.4) million, or 4.7 (5.2) per
cent of sales. The effect of cost savings and other efficiency measures are
already materialising. The non-recurring item consists of EUR 0.6 million of
reorganisation expenses related to business acquisitions in Norway. Another
factor that had an impact on the result of the quarter is a non-recurring EUR
1.8 million impairment related to the business operations transferred to the
Russian joint venture, presented after EBITA. EBITA of the comparison period in
2012 included a non-recurring net capital gain from the divestment of the
modular space production and customised modular space rental businesses in
Finland, totalling EUR 2.2 million.
EBITDA was EUR 29.7 (36.2) million, or 20.0 (22.6) per cent of sales. Earnings
per share were EUR -0.04 (0.04). Comparable earnings per share excluding the
effect of non-recurring items were EUR 0.01 (-0.01).
A satisfactory result was achieved in Finland and Sweden, considering the
market environment. In Denmark, the result improved as a result of the depot
network reduction carried out at the end of 2012. The result also improved from
the previous year in Eastern Europe as well as in Norway before non-recurring
expenses. The cold winter postponed the start of many construction projects
especially in Central Europe, and profit development in that region was weak.
In the modular space business, demand has continued at a high level in all
Nordic countries.
Cash flow from operating activities was EUR 17.9 (17.8) million, gross capital
expenditure was EUR 46.2 (24.3) million and net cash flow from investing
activities EUR -36.8 (-0.7) million. Gross capital expenditure includes
acquisitions and business combinations EUR 31.2 million. Cash flow after
investments was EUR -18.9 (17.1) million.
The Group's gearing was 69.7 (77.4) per cent at the end of March. Gearing was
affected by the acquisitions completed.
After the period under review, on 29 April 2013, Cramo redeemed the EUR 50
million hybrid bond as planned, The redemption is expected to improve the
Group's cash flow from financing activities by approximately EUR 4 million per
year.
MARKET OUTLOOK
The economic uncertainty in Europe continues. In both industrial and new
construction activities, investment decisions are being postponed to a later
date. However, market-specific differences are great.
Both the construction market analyst Euroconstruct and the Confederation of
Finnish Construction Industries RT have estimated that construction activity
will decline by some three per cent in Finland in 2013. In Sweden, construction
activity is estimated to remain at the 2012 level or to decline slightly. In
Poland, construction market growth is estimated to take a negative turn. In
Denmark, Norway, Germany, Russia and the Baltic region, the market is expected
to grow.
The equipment rental market normally grows faster than the underlying
construction market, but changes in demand follow those in construction with a
small delay and may be strong.
Cramo takes a cautious approach to 2013. The equipment rental market will be
challenging particularly during the first part of the year, but the economic
situation in Cramo's main markets is forecasted to improve towards the end of
the year.
(All construction market forecasts presented in this review are estimates by
Euroconstruct, unless otherwise stated.)
CEO VESA KOIVULA'S COMMENT
“Our top-line development did not meet our expectations. Although our
performance varies by country, a 7.2 per cent decline in sales puts a pressure
on the organisation. Therefore the management initiated a program to better
align our cost structure with the market conditions. As a result, we managed to
keep our comparable EBITA margin almost intact.
One of the most significant events during the first months of the year was the
launch of Fortrent, our joint venture with Ramirent in Russia and Ukraine. By
combining the resources of two companies with extensive experience of operating
in Russia, we now have achieved a better leverage and an opportunity to gain a
leading position in equipment rental in the growing Russian market. The
partnership with Ramirent increases the growth opportunities for Fortrent while
balancing the risks involved. There is a good market for rental business in
Russia.
During the period, we completed acquisitions in Norway when we bought the
businesses of rental companies Lambertsson and Kranpunkten. In these
transactions the companies outsourced their rental fleet and personnel to
Cramo. Cramo also concluded a long-term delivery contract with the Peab Group
in Norway. This strengthens both the cooperation between Cramo and Peab and our
position in the growing Norwegian rental market. The integration of operations
has proceeded well.
As we expected, the first quarter was financially difficult for Cramo. We may
be experiencing the low point of the business cycle in our main markets, and
during the quarter there were also non-recurring expenses resulting from
corporate reorganisations. Our result was affected by the long winter season
which postponed the start of numerous construction projects. The demand for
equipment rental is expected to pick up in the spring.
With few exceptions, we see no growth in construction or equipment rental in
2013, as in the economy in general. This emphasises the significance of
improving operational efficiency. We also continue to develop our sales and
customer service. The effect of cost savings and other efficiency measures are
already materialising. This forms a solid foundation for better profitability
in the challenging operating environment of 2013”, says Vesa Koivula, President
and CEO of Cramo Group.
BRIEFING
Cramo will hold a briefing and a live webcast at Kämp Kansallissali, address:
Aleksanterinkatu 44 A, 2nd floor, Helsinki, on Friday, 3 May 2013 at 11.00 am.
The briefing will be in English.
To watch the briefing live on the Internet, go to www.cramo.com. A replay of
the webcast will be available at www.cramo.com from 3 May 2013 in the
afternoon.
PUBLICATION OF FINANCIAL INFORMATION 2013
Cramo will publish two more Interim Reports in 2013.
The January-June Interim Report will be published on Tuesday, 13 August 2013.
The January-September Interim Report will be published on Wednesday, 30 October
2013.
Vantaa, 2 May 2013
CRAMO PLC
Board of Directors
Further information:
Vesa Koivula, President and CEO, tel. +358 40 510 5710
Martti Ala-Härkönen, CFO, tel. +358 40 737 6633
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.cramo.com
Cramo is one of the largest equipment rental service companies in Europe,
specialising in construction machinery and equipment rental and rental-related
services as well as the rental of modular space. Cramo operates in fifteen
countries with close to 400 depots. With a group staff around 2.550, Cramo's
consolidated sales in 2012 was EUR 690 million. Cramo shares are listed on the
NASDAQ OMX Helsinki Ltd. Further information: www.cramo.com
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