Published:

2014-02-12 08:00:00 CET

Registered:

2014-02-12 08:00:04 CET

REGULATED INFORMATION

English

Finnish

Cramo Oyj - Financial Statement Release

Cramo’s Financial Statements Bulletin for January–December 2013

Improving profitability, strong cash flow

Vantaa, Finland, 2014-02-12 08:00 CET (GLOBE NEWSWIRE) -- Cramo Plc Financial
Statements Bulletin 12 February 2014, at 9.00 am (EET)

Cramo's Financial Statements Bulletin for January-December 2013

Improving profitability, strong cash flow

1-12/2013 highlights (year-on-year comparison in brackets):

-- Sales EUR 657.3 (688.4) million; the change was -4.5%. Sales change in
local currencies, excluding divested operations and restructuring in
Russia, -1.5%
-- EBITA EUR 79.9 (78.0) million and EBITA margin 12.2% (11.3%); comparable
EBITA before non-recurring items EUR 80.5 (78.5) million, or 12.2% (11.4%)
of sales
-- Earnings per share EUR 1.01 (0.94); comparable earnings per share before
non-recurring items EUR 1.02 (0.83)
-- Return on equity (rolling 12 months) 8.3% (7.5%)
-- Cash flow from operating activities EUR 160.3 (146.0) million. Cash flow
after investments EUR 50.3 (62.2) million, cash flow from investments
includes acquisitions totalling EUR 25.9 million
-- Gearing 72.9% (65.1%), EUR 50 million hybrid bond redeemed on 29 April 2013
-- The Board proposes a dividend of EUR 0.60 (0.42) per share, an increase of
42.9% on 2012

10-12/2013 (year-on-year comparison in brackets):

-- Sales EUR 175.1 (184.6) million; the change was -5.1%. Sales increased in
local currencies, excluding restructuring in Russia, by 0.9%
-- EBITA EUR 24.8 (21.9) million and EBITA margin 14.1% (11.9%), comparable
EBITA before non-recurring items EUR 24.8 (23.3) million, or 14.1% (12.6%)
of sales
-- Earnings per share EUR 0.38 (0.34); comparable earnings per share before
non-recurring items EUR 0.35 (0.26)
-- Cash flow from operating activities EUR 66.3 (58.2) million, cash flow
after investments EUR 34.4 (37.7) million

Guidance for 2014: In 2014, Cramo Group's EBITA margin will continue to improve
compared to 2013. Cramo Group's sales is also expected to grow in 2014,
however, exact sales is exposed to changing exchange rates.

KEY FIGURES AND RATIOS (MEUR) 10-12/ 10-12/ Change 1-12/1 1-12/1 Change
13 12 % 3 2 %
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Income statement
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Sales 175.1 184.6 -5.1 % 657.3 688.4 -4.5 %
--------------------------------------------------------------------------------
EBITDA 1) 48.2 46.2 4.3 % 173.8 179.6 -3.2 %
--------------------------------------------------------------------------------
EBITA 1), 2) 24.8 21.9 12.9 % 79.9 78.0 2.4 %
--------------------------------------------------------------------------------
% of sales 14.1% 11.9% 12.2% 11.3%
--------------------------------------------------------------------------------
Operating profit (EBIT) 1) 21.8 17.3 26.3 % 66.8 64.5 3.6 %
--------------------------------------------------------------------------------
Profit before taxes (EBT) 3) 18.0 12.1 49.7 % 51.9 44.3 17.4 %
--------------------------------------------------------------------------------
Profit for the period 3) 16.3 14.2 14.7 % 42.8 38.7 10.4 %
--------------------------------------------------------------------------------
Share related information
--------------------------------------------------------------------------------
Earnings per share (EPS), EUR 0.38 0.34 11.9 % 1.01 0.94 8.0 %
3)
--------------------------------------------------------------------------------
Earnings per share (EPS), 0.38 0.34 10.9 % 1.00 0.93 7.4 %
diluted, EUR 3)
--------------------------------------------------------------------------------
Shareholders' equity per share, 11.56 11.58 -0.2 %
EUR
--------------------------------------------------------------------------------
Other information
--------------------------------------------------------------------------------
Return on investment, % 4), 5) 7.7 % 7.3 %
--------------------------------------------------------------------------------
Return on equity, % 4), 5) 8.3 % 7.5 %
--------------------------------------------------------------------------------
Equity ratio, % 4) 47.1 % 48.6 %
--------------------------------------------------------------------------------
Gearing, % 4) 72.9 % 65.1 %
--------------------------------------------------------------------------------
Net interest-bearing 364.8 346.9 5.2 %
liabilities 4)
--------------------------------------------------------------------------------Gross capital expenditure 30.7 25.6 19.9 % 129.6 125.1 3.6 %
(incl. acquisitions)
--------------------------------------------------------------------------------
of which acquisition/business -0.5 29.1 0.8
combinations
--------------------------------------------------------------------------------
Cash flow from operating 66.3 58.2 14.0 % 160.3 146.0 9.8 %
activities
--------------------------------------------------------------------------------
Cash flow after investments 34.4 37.7 -8.7 % 50.3 62.2 -19.2 %
--------------------------------------------------------------------------------
Average number of personnel 2,463 2,664 -7.5 %
(FTE)
--------------------------------------------------------------------------------
Number of personnel at period 2,416 2,555 -5.4 %
end (FTE)
--------------------------------------------------------------------------------
1) Effective from the Q1 2013 reporting the share of profit / loss of joint
ventures is presented above EBITDA. Due to retrospective application of the
change in accounting policy, figures for the comparative periods were adjusted
--------------------------------------------------------------------------------
-
2) EBITA is operating profit before amortisation and impairment resulting from
acquisitions and disposals
--------------------------------------------------------------------------------
-
3) Based on the revised IAS 19 standard Employee benefits, effective from
January 1, 2013, actuarial gains and losses resulting from the changes in
assumptions used in the valuation of pension liabilities are recognised
immediately in other comprehensive income. Due to retrospective application,
finance costs for 10-12/12 and 1-12/12 have been decreased by EUR 0.2 million
--------------------------------------------------------------------------------
-
4) 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 IFRS 5
--------------------------------------------------------------------------------
-
5) Rolling 12 month
----------------------------------------

CEO VESA KOIVULA'S COMMENT

“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. We will continue to develop our
operations particularly in Norway, Denmark and Central Europe.

In addition to operational development, adjustments of fixed costs and capital
costs that were started already in 2012 have improved our EBITA margin.

After a slow first half of the year, demand began to develop more favourably
after the summer. Market forecasts for 2014 are optimistic for many of our
markets, but the growth rate is likely to remain moderate. I am expecting the
rental market to resume growth in the second half of the year at the latest.

Cramo celebrated its 60th year of operation in 2013, which puts us among the
oldest European companies in our sector. Established in the small market of
Finland, we have developed into one of the largest equipment rental companies
in Europe. I believe that, combined with our experience, our strong desire to
develop into an even more flexible and advanced operator lays an excellent
foundation for future success. In 2014, we will continue our work to achieve
the Group's profitability goals,” says Vesa Koivula, President and CEO of Cramo
Group.

SUMMARY OF FINANCIAL PERFORMANCE IN 2013

Cramo Group's consolidated sales for 2013 decreased by 4.5 per cent to EUR
657.3 (688.4) million. In local currencies, sales decreased by 4.2 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 Russian operations to a joint venture on 1 March 2013. Sales was
also affected by the rationalisation of the depot network in Denmark in the end
of 2012. Sales change in local currencies, excluding divested operations and
restructuring in Russia, was -1.5 per cent.

The last quarter of 2013 showed growth; excluding restructuring in Russia and
changes in exchange rates, sales increased by 0.9 per cent. Fourth-quarter
euro-based sales were EUR 175.1 (184.6) million, showing a change of -5.1 per
cent. In local currencies, sales decreased by 2.6 per cent.

Despite the challenging market environment, Cramo Group met its profitability
target for 2013. EBITA for 2013 was EUR 79.9 (78.0) million. EBITA margin
improved in line with targets and was 12.2 (11.3) per cent of sales. Comparable
EBITA before non-recurring items was EUR 80.5 (78.5) million, or 12.2 (11.4)
per cent of sales. Operational development in accordance with the Group's
strategy and successful cost savings improved the result.

Fourth-quarter EBITA was EUR 24.8 (21.9) million. Profitability continued to
improve, and EBITA margin was 14.1 (11.9) per cent of sales. EBITA before
non-recurring items was EUR 24.8 (23.3) million, or 14.1 (12.6) per cent of
sales.

Full-year earnings per share were EUR 1.01 (0.94), and comparable earnings per
share before non-recurring items were EUR 1.02 (0.83). Fourth-quarter earnings
per share were EUR 0.38 (0.34). In the fourth quarter, earnings per share were
improved non-recurringly by the decrease in the Finnish corporate income tax
rate, the effect of which was EUR 0.04. Fourth-quarter earnings per share
before non-recurring items were EUR 0.35 (0.26).

A good full-year result was achieved in Finland, Sweden and Eastern Europe. In
Norway, profitability developed favourably, and in Denmark the full year result
turned positive. In Eastern Europe, the improvement in profitability was also
affected by the result of the joint venture company Fortrent in Russia. In the
fourth quarter, profitability improved in Finland, Norway, Denmark and Eastern
Europe. In Central Europe, Cramo's transition programme proceeded as planned.
In the modular space business, demand has continued at a high level in all
Nordic countries.

In 2013, cash flow from operating activities increased year-on-year and was EUR
160.3 (146.0) million. Gross capital expenditure was EUR 129.6 (125.1) million,
and net cash flow from investing activities EUR -110.0 (-83.8) million. Gross
capital expenditure includes acquisitions and business combinations completed
in the first quarter, which amounted to EUR 29.1 million and had a cash flow
effect of EUR -25.9 million. Cash flow after investments was EUR 50.3 (62.2)
million. Cash flow from operating activities continued to increase in the
fourth quarter and was EUR 66.3 (58.2) million. Cash flow after investments was
EUR 34.4 (37.7) million.

The Group's gearing was 72.9 (65.1) per cent at the end of 2013. During the
first half of the year, gearing was affected by the acquisitions completed
during the first quarter and the redemption of the EUR 50 million hybrid bond
in April.

The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.60 (0.42) be paid for the financial year for 2013, which represents an
increase of 42.9 per cent on 2012.

MARKET OUTLOOK

Since the summer of 2013, economic uncertainty has given way to more stable
development in Europe. The economies in the eurozone are estimated to take an
upward turn in 2014. Growth is expected particularly in the second half of the
year.

Market-specific differences in construction and the demand for rental services
are still considerable in Europe. In its November forecast, the construction
market analyst Euroconstruct estimated that construction would decline in
Finland, Sweden, Poland, Estonia, the Czech Republic and Slovakia in 2013.
Construction is estimated to have increased in Norway, Denmark, Latvia and
Lithuania as well as slightly in Germany. In 2014, construction is expected to
increase in the Nordic countries, Germany, Poland and Lithuania. Construction
and the economic development in Norway did not meet expectations in the fourth
quarter of 2013, which is likely to weaken the outlook for construction in
2014.

In the long term, the equipment rental market is expected to grow faster than
the construction market. Changes in demand usually follow those in construction
with a delay and may be strong. In addition to construction, the demand for
equipment rental services is affected by industrial investments and the rental
penetration rate. The need to improve profitability in construction and the
increasingly strict environmental and health requirements related to
construction are some of the factors which make rental services more
attractive.

The European Rental Association (ERA) is expecting equipment rental to increase
in all of Cramo's main market areas in 2014.

SALES AND PROFIT

Fourth-quarter sales were EUR 175.1 (184.6) million, showing a change of -5.1
per cent. In local currencies, sales decreased by 2.6 per cent. Excluding
restructuring in Russia, sales increased in local currencies in the fourth
quarter by 0.9 per cent.

Fourth-quarter EBITA was EUR 24.8 (21.9) million. Profitability continued to
improve, and EBITA margin was 14.1 (11.9) per cent of sales. The fourth quarter
of 2012 included EUR 1.8 million in non-recurring expenses related to the
streamlining of the Danish depot network, EUR 1.0 million related to the
reorganisation of the German operations and EUR 1.4 million in non-recurring
earnings related to the price adjustment of the Theisen acquisition in Central
Europe. In 2013, fourth-quarter EBITA before non-recurring items was EUR 24.8
(23.3) million, or 14.1 (12.6) per cent of sales.

Full-year EBITDA was EUR 173.8 (179.6) million, or 26.4 (26.1) per cent of
sales. In the fourth quarter, EBITDA was EUR 48.2 (46.2) million, or 27.5
(25.0) per cent of sales.

EBIT for 2013 was EUR 66.8 (64.5) million, or 10.2 (9.4) per cent of sales.
Fourth-quarter EBIT was EUR 21.8 (17.3) million. In the fourth quarter EBIT was
decreased by a non-recurring impairment loss of intangible assets totalling EUR
0,4 million in Norway. In the fourth quarter of 2012, an impairment of EUR 1.8
million in intangible assets resulting from acquisitions in Denmark had a
negative effect on EBITA, in addition to non-recurring items.

Profit before taxes was EUR 51.9 (44.3) million and profit for the period EUR
42.8 (38.7) million.

The Group's credit losses and credit loss provisions in 2013 were EUR 4.8 (6.0)
million. The result includes impairment losses on the fleet totalling EUR 0.8
(2.0) million.

Expenses associated with share-based payments totalled EUR 1.7 (2.6) million.

Net financial expenses in 2013 were EUR 14.9 (20.2) million.

The effective tax rate for Cramo was 17.6 (12.4) per cent in 2013. In the
fourth quarter, the Finnish Tax Administration issued a residual tax decision
of EUR 9.7 million for Cramo, concerning the years 2009-2012. According to the
decision, the interest income from Cramo's financing company in Belgium should
have been taxed in Finland. Cramo has already paid the taxes in Belgium. The
company considers the decision to be unfounded and will appeal. The company has
not recognised the taxes payable through profit or loss.

Full-year earnings per share were EUR 1.01 (0.94), and comparable earnings per
share before non-recurring items were EUR 1.02 (0.83). Diluted earnings per
share were EUR 1.00 (0.93).

In the fourth quarter, earnings per share were EUR 0.38 (0.34), and diluted
earnings per share were EUR 0.38 (0.34). In the fourth quarter, earnings per
share were improved non-recurringly by the decrease in the Finnish corporate
income tax rate, the effect of which was EUR 0.04. In the fourth quarter of
2012, earnings per share were improved by the decrease in the Swedish corporate
income tax rate as well as by other non-recurring items, which had a positive
net effect of EUR 0.08. Fourth-quarter earnings per share before non-recurring
items were EUR 0.35 (0.26).

Return on investment (rolling 12 months) was 7.7 (7.3) per cent. Return on
equity (rolling 12 months) was 8.3 (7.5) per cent.

BOARD OF DIRECTORS PROPOSAL FOR PROFIT DISTRIBUTION

Cramo Plc's goal is to follow a stable profit distribution policy and to pay
approximately 40% of earnings per share (EPS) for a period as a dividend.

On 31 December 2013, Cramo Plc's total distributable funds were EUR
171,264,670.70 including EUR 37,503,294.37 of retained earnings. The Board of
Directors proposes to the Annual General Meeting that a dividend of EUR 0.60
(0.42) be paid for the financial year 2013, which represents an increase of
42.9 per cent from 2012. The Board intends to summon the Annual General Meeting
on 1 April 2014.

BRIEFING

Cramo will hold a briefing and a live webcast at Kämp Kansallissali, address:
Aleksanterinkatu 44 A, 2nd floor, Helsinki, on Wednesday, 12 February 2014 at
11.00 a.m. 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 12 February 2014 in the
afternoon.

PUBLICATION OF FINANCIAL INFORMATION 2014

The Annual Report containing the full financial statements for 2013 will be
published in electronic format in week 10/2014.

The 2014 Annual General Meeting will be held Tuesday, 1 April 2014, in Helsinki.

In 2014, Cramo Plc will publish three Interim Reports.

Interim Report 1-3/2014 will be published on 8 May 2014
Interim Report 1-6/2014 will be published on 6 August 2014
Interim Report 1-9/2014 will be published on 29 October 2014

CRAMO PLC

Vesa Koivula
President and CEO

FURTHER INFORMATION

Vesa Koivula, President and CEO, tel. +358 10 661 10, +358 40 510 5710
Martti Ala-Härkönen, CFO, tel. +358 10 661 10, +358 40 737 6633

DISTRIBUTION

NASDAQ OMX Helsinki Ltd
Principal 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 360 depots. With a group staff around 2.400, Cramo's
consolidated sales in 2013 was EUR 660 million. Cramo shares are listed on the
NASDAQ OMX Helsinki Ltd. Further information: www.cramo.com

Attachments:

Cramo_Q4 2013 English.pdf