2015-08-05 08:00:00 CEST
2015-08-05 08:00:04 CEST
REGULATED INFORMATION
Cramo Oyj - Interim report (Q1 and Q3)
Cramo’s Interim Report January–June 2015
Continued sales growth, profitability improved in all markets
Vantaa, Finland, 2015-08-05 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc
Interim Report 5th August 2015, at 9.00 am Finnish time (EET)
Cramo's Interim Report January-June 2015
Continued sales growth, profitability improved in all markets
4-6/2015 highlights (the 4-6/2014 comparison figures in brackets)
-- Sales EUR 161.3 (159.8) million; the change was 1.0%. In local currencies,
sales grew by 2.8%
-- EBITDA EUR 43.7 (36.6) million
-- EBITA EUR 18.4 (12.5) million and EBITA margin 11.4% (7.8%)
-- Earnings per share EUR 0.23 (0.12)
-- Cash flow from operating activities EUR 55.5 (29.2) million and cash flow
after investments EUR 15.5 (-10.6) million
1-6/2015 highlights (the 1-6/2014 comparison figures in brackets)
-- Sales EUR 308.4 (300.0) million; the change was 2.8%. In local currencies,
sales grew by 5.5%
-- EBITDA EUR 78.0 (64.4) million
-- EBITA EUR 28.5 (16.8) million and EBITA margin 9.2% (5.6%)
-- Earnings per share EUR 0.32 (0.09)
-- Cash flow from operating activities EUR 57.9 (37.3) million and cash flow
after investments EUR -12.4 (-21.4) million
-- Gearing 91.2% (89.0%)
-- Cramo has decided to publish quarterly financial information also by
product area
Guidance for 2015 unchanged: There are economic and political uncertainties in
Cramo's markets related to 2015. With the current market outlook, Cramo Group's
sales will grow in local currencies and the EBITA margin will improve in 2015
compared to 2014.
KEY FIGURES AND RATIOS 4-6/15 4-6/14 Change 1-6/15 1-6/14 Change 1-12/1
(MEUR) % % 4
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Income statement
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Sales 161.3 159.8 1.0 % 308.4 300.0 2.8 % 651.8
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EBITDA 43.7 36.6 19.5 % 78.0 64.4 21.1 % 167.3
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EBITA before 18.4 12.5 47.2 % 28.5 16.8 69.2 % 73.2
non-recurring items
1) 2)
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% of sales 11.4% 7.8% 9.2% 5.6% 11.2%
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EBITA after 18.4 12.5 47.2 % 28.5 16.8 69.2 % 70.3
non-recurring items
1) 2)
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% of sales 11.4% 7.8% 9.2% 5.6% 10.8%
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Operating profit 16.2 9.8 65.6 % 24.2 11.6 108.8 % 34.3
(EBIT)
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Profit before taxes 13.0 6.4 102.3 % 17.9 4.8 271.2 % 21.5
(EBT)
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Profit for the period 10.3 5.0 104.6 % 14.2 3.8 275.5 % 16.0
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Share related
information
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Earnings per share 0.23 0.12 101.9 % 0.32 0.09 270.8 % 0.91
(EPS) before
non-recurring items,
EUR 3)
--------------------------------------------------------------------------------
Earnings per share 0.23 0.12 101.9 % 0.32 0.09 270.8 % 0.37
(EPS), EUR
--------------------------------------------------------------------------------
Earnings per share 0.23 0.11 105.4 % 0.32 0.09 275.2 % 0.36
(EPS), diluted, EUR
--------------------------------------------------------------------------------
Shareholders' equity 10.42 10.68 -2.4 % 10.40
per share, EUR
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Other information
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Return on investment, 5.5 % 7.2 % 4.2 %
% 4)
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Return on equity, % 4) 5.7 % 8.7 % 3.4 %
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Equity ratio, % 42.5 % 42.7 % 43.9 %
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Gearing, % 91.2 % 89.0 % 84.7 %
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Net interest-bearing 420.3 414.5 1.4 % 385.4
liabilities
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Gross capital 46.1 53.1 -13.1 % 87.6 80.4 9.0 % 159.1
expenditure (incl.
acquisitions)
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of which 11.3 8.6 11.3 -24.5 % 11.4
acquisitions/business
combinations
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Cash flow from 55.5 29.2 90.0 % 57.9 37.3 55.4 % 118.3
operating activities
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Cash flow after 15.5 -10.6 -12.4 -21.4 -6.5
investments
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Average number of 2,484 2,516 -1.3 % 2,528
personnel (FTE)
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Number of personnel at 2,491 2,567 -3.0 % 2,473
period end (FTE)
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1) EBITA is operating profit before amortisation and impairment resulting from
acquisitions and disposals.
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2) Full year 2014 non-recurring costs included in EBITA amounted to EUR 2.9
million, of which EUR 2.2 million relating to Denmark and EUR 0.7 million
non-recurring costs at the Group level.
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-
3) Full year 2014 non-recurring costs included in the profit for the period
amounted to EUR 23.6 million, of which EUR 2.2 million relating to Denmark, EUR
0.7 million to non-recurring costs at the Group level, EUR 25.5 million to an
impairment on goodwill and intangible assets in Central Europe and EUR 4.8
million to a tax income.
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-
4) Rolling 12 months. In 2015, second quarter comparable return on investment
before the effect of the non-recurring items for 2014 was 8.7% (7.2%) and
comparable return on equity before the effect of the non-recurring items for
2014 was 10.8% (8.7%).
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CEO VESA KOIVULA'S COMMENT
Cramo's strategy delivers results
“In the second quarter of 2015, Cramo Group's sales growth and profitability
improvement continued. The positive development started in the autumn of 2014,
thanks to both our own performance improvement actions and the improved market
situation. This year, the market situation has strengthened particularly in
Sweden and in many locations in Eastern Europe.
Sales for January-June grew in Finland, Sweden, Central Europe and Eastern
Europe and amounted to EUR 308.4 million. In the second quarter our rental
sales grew more strongly than in the first quarter, whereas lower-margin
rental-related sales and trading sales decreased slightly year-on-year.
According to our estimates, Cramo has gained some market share in core rental
operations in several of its markets during 2015.
The modular space product area continues to grow well; growth in local
currencies was 9.1% in the first half of the year. Demand for modular space
remains at a good level and we continue to develop the modular space business
determinedly.
During the first half of the year, our EBITA grew by EUR 11.6 million and our
EBITA margin increased from 5.6% to 9.2%. In the second quarter, our EBITA
margin increased from 7.8% to 11.4%. A specific highlight is that our
profitability improved, both during the second quarter and the first half of
the year, in all of our business segments and product areas. We achieved a good
result in Finland in a difficult market situation and a clear result
improvement in Sweden and Norway. The turn of the Danish and Eastern European
operations to profit during the first half of the year is encouraging.In
Central Europe, the second-quarter sales targets were not reached but the
result improved year-on-year.
Our performance improvement actions are showing results. The Group's fixed
costs were lower than last year also in the second quarter, and cost control
continues to be one of our key focus areas. In order to further improve
profitability, we continue the Group's performance improvement actions in 2015,
especially with regard to direct costs.
“For a great day at work” and our customer promises related to the Cramo Story
programme contribute to strengthening our position as the first choice for
customers. The adoption of our Performance Management Model will further
improve our productivity.
With the current market outlook, I believe that Cramo Group's positive
development will continue,” says Vesa Koivula, President and CEO of Cramo
Group.
SUMMARY OF FINANCIAL PERFORMANCE IN JANUARY-JUNE 2015
Sales
Cramo Group's consolidated sales for January-June 2015 were EUR 308.4 (300.0)
million. The gradual sales improvement that started in 2014 continued. Sales
showed a year-on-year increase of 2.8%. In local currencies, sales grew by
5.5%.
During the first half of the year, sales grew by 5.8% in Finland, by 4.2% in
Sweden and by 5.8% in Eastern Europe. In local currencies, sales in Sweden grew
by 8.7%. Sales decreased in Norway and Denmark where operations were
restructured in 2014.
In the second quarter, sales were EUR 161.3 (159.8) million, growing 1.0%. In
local currencies, sales grew by 2.8%. Rental sales continued to grow
year-on-year, whereas rental-related sales and trading sales slightly
decreased. The growth rate in rental sales strengthened compared to the first
quarter.
In the second quarter, sales grew in local currencies by 5.8% in Finland, by
5.6% in Sweden and by 3.6% in Eastern Europe. In Central Europe, rental sales
grew year-on-year but lower trading sales affected sales growth in the second
quarter.
As for product areas, sales growth during the first half of the year was 1.9%
(4.7% in local currencies) for equipment rental and 6.5% (9.1% in local
currencies) for modular space. Demand for modular space remained at a good
level.
Costs
The performance improvement actions carried out in 2014 had a positive effect
on the Group's result in early 2015. In January-June, fixed costs decreased by
EUR 6.6 million year-on-year. During the second quarter, fixed costs decreased
by EUR 4.2 million. In 2015, Cramo continues performance improvement actions
especially with regard to direct costs (materials and services).
Results
Profitability improved year-on-year. EBITA for January-June was EUR 28.5 (16.8)
million, showing a growth of 69.2%. EBITA margin was 9.2% (5.6%) of sales.
EBITA for April-June was EUR 18.4 (12.5) million, showing a growth of 47.2%.
EBITA margin was 11.4% (7.8%) of sales.
Profitability improved in all business segments both in the second quarter and
in the first half of the year.
In January-June, profitability was good in Finland and Sweden and in the second
quarter also in Eastern Europe. Profitability improved clearly year-on-year in
Norway and Denmark where Cramo has adjusted and focused its operations. In
Central Europe, the result improved year-on-year but still remained negative.
The result of the Russian-Ukrainian joint venture Fortrent also improved.
In January-June, as for product areas, equipment rental EBITA was EUR 19.2
(10.0) million, or 7.3% (3.9%) of sales. In modular space (Cramo Adapteo),
EBITA was EUR 13.6 (12.4) million, or 30.7% (29.8%) of sales. During the second
quarter, equipment rental EBITA was EUR 13.6 (9.2) million and modular space
EBITA was EUR 6.8 (6.5) million. As of the beginning of 2015, Cramo publishes
quarterly financial information also by product area.
In January-June, earnings per share were EUR 0.32 (0.09). Second-quarter
earnings per share were EUR 0.23 (0.12).
In January-June, cash flow from operating activities was EUR 57.9 (37.3)
million. Fleet investments are being made somewhat more up front in the year
than in 2014. Cash flow from investing activities was EUR -70.3 (-58.6) million
and cash flow after investments EUR -12.4 (-21.4) million. Gross capital
expenditure was EUR 87.6 (80.4) million. Gross capital expenditure includes EUR
8.6 (11.3) million for acquisitions, the cash flow effect of which was EUR -5.7
million.
The second-quarter cash flow from operating activities improved clearly
year-on-year and was EUR 55.5 (29.2) million. Cash flow after investments was
EUR 15.5 (-10.6) million.
The Group's gearing was 91.2% (89.0%) at the end of June.
MARKET OUTLOOK
The national economies in Europe are taking an upward turn but growth is still
estimated to be modest in many countries and there are significant
country-specific differences. The European Central Bank's monetary stimulus is
expected to improve the economic outlook for the eurozone. The decline in the
oil price is expected to have a positive impact on economic development with
the exception of Norway and Russia. The greatest uncertainties about economic
development are related to the geopolitical situation and the risks related to
the European financial markets and currency rate fluctuations. For Cramo,
significant uncertainties relate to the Ukrainian crisis and the overall
economic situation in Russia.
In Europe, market-specific differences are considerable also in the development
of construction and the demand for rental services. In its reports published in
June, the construction market analysts Euroconstruct and Forecon estimated that
in 2015, construction would increase in all of Cramo's operating countries with
the exception of Finland, where construction will remain on par with the
previous year, and Estonia, Latvia and Russia, where construction will decline.
In the long term, the equipment rental market is expected to grow faster than
construction. Changes in demand usually follow those in construction with a
delay. In addition to construction, the demand for equipment rental services is
affected by industrial investments and the rental penetration rate.
According to its June forecast, the European Rental Association (ERA) expects
equipment rental services to increase in all of Cramo's main markets in 2015.
The growth is expected to somewhat strengthen compared to 2014.
(All construction market forecasts presented in this review are estimates by
Euroconstruct, unless otherwise stated.)
GUIDANCE ON GROUP OUTLOOK
The guidance of Cramo Plc's Board of Directors for 2015 is unchanged: There are
economic and political uncertainties in Cramo's markets related to 2015. With
the current market outlook, Cramo Group's sales will grow in local currencies
and the EBITA margin will improve in 2015 compared to 2014
BRIEFING
Cramo will hold a briefing and a live webcast at Hotel Kämp, address:
Kluuvikatu 2 (2nd floor) in Helsinki on Wednesday, 5 August 2015 at 11.00 am.
The briefing will be in English.
It can be viewed live on the Internet at www.cramo.com. A replay of the webcast
will be available at www.cramo.com from 5 August 2015 in the afternoon.
PUBLICATION OF FINANCIAL INFORMATION 2015
In 2015, Cramo Plc will publish one more interim report:
The interim report for January-September 2015 will be published on Thursday, 29
October 2015.
CRAMO PLC
Vesa Koivula
President and CEO
Further information:
Vesa Koivula, President and CEO, tel: +358 40 510 5710
Martti Ala-Härkönen, CFO, tel: +358 10 661 10, +358 40 737 6633
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.cramo.com
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 fifteen countries with 330
depots. With a group staff around 2.500, Cramo's consolidated sales in 2014 was
EUR 652 million. Cramo shares are listed on the NASDAQ OMX Helsinki Ltd.
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