2012-05-04 08:00:02 CEST
2012-05-04 08:00:20 CEST
REGULATED INFORMATION
Cramo Oyj - Interim report (Q1 and Q3)
Cramo’s Interim Report 1 January−31 March 2012
Sales and profits up
Vantaa, Finland, 2012-05-04 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc Interim
Report 4 May 2012, at 09.00 am Finnish time (GMT+2)
Cramo's Interim Report 1 January−31 March 2012
Sales and profits up
1-3/2012 highlights (year-on-year comparison in brackets)
-- Sales EUR 160.0 (144.2) million, up 10.9%, of which organic growth was 4.7%
-- EBITA EUR 10.6 (2.5) million and EBITA margin 6.6% (1.7%)
-- Earnings per share EUR 0.04 (-0.17)
-- R
eturn on equity (rolling 12 months) 7.3% (-0.2%)
-- Cash flow from operating activities EUR 17.8 (3.6) million, cash flow after
investments EUR 17.1 (-45.2) million
-- Gearing 77.4% (124.2%)
-- Cramo sold its modular space production and customised modular space rental
businesses in Finland
Outlook for 2012 remains unchanged:
-- In 2012, the Group
'
s sales will grow and the EBITA margin will improve compared with 2011.
Gearing will decrease due to positive cash flow.
KEY FIGURES AND RATIOS (MEUR) 1-3/12 1-3/11 Change % 1-12/11
--------------------------------------------------------------------------------
Income statement
--------------------------------------------------------------------------------
Sales 160.0 144.2 10.9 % 679.9
--------------------------------------------------------------------------------
EBITDA 36.2 25.3 42.7 % 168.7
--------------------------------------------------------------------------------
EBITA 1) 10.6 2.5 330.0 % 71.1
--------------------------------------------------------------------------------
% of sales 6.6% 1.7% 10.5%
--------------------------------------------------------------------------------
Operating profit / loss (EBIT) 7.6 -0.2 54.3
--------------------------------------------------------------------------------
Profit / loss before tax (EBT) 2.4 -4.0 32.2
--------------------------------------------------------------------------------
Profit / loss for the period 1.8 -6.0 23.5
--------------------------------------------------------------------------------
Share related information
--------------------------------------------------------------------------------
Earnings per share (EPS), EUR 2) 0.04 -0.17 0.60
--------------------------------------------------------------------------------
Earnings per share (EPS), diluted, EUR 2) 0.04 -0.17 0.60
--------------------------------------------------------------------------------
Shareholders' equity 2) 10.54 9.22 14.3 % 10.83
--------------------------------------------------------------------------------
Other information
--------------------------------------------------------------------------------
Return on investment, % 3) 7.3 % 3.5 % 6.6 %
--------------------------------------------------------------------------------
Return on equity, % 3) 7.3 % -0.2 % 5.4 %
--------------------------------------------------------------------------------
Equity ratio, % 44.5 % 35.5 % 44.4 %
--------------------------------------------------------------------------------
Gearing, % 77.4 % 124.2 % 78.7 %
--------------------------------------------------------------------------------
Net interest-bearing liabilities 374.7 462.6 -19.0 % 389.4
--------------------------------------------------------------------------------
Gross capital expenditure (incl. 24.3 91.3 -73.4 % 262.5
acquisitions)
--------------------------------------------------------------------------------
of which acquisition/business combinations 72.7 115.4
--------------------------------------------------------------------------------
Cash flow after investments 17.1 -45.2 -55.3
--------------------------------------------------------------------------------
Average number of personnel (FTE) 2,721 2,356 15.5 % 2,580
--------------------------------------------------------------------------------
Number of personnel at period end (FTE) 2,736 2,457 11.4 % 2,707
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
-
1) EBITA is operating profit before amortisation and impairment of intangible
assets resulting from acquisitions
2) Due to the rights issue completed in April 2011, the earnings per share (EPS)
figures for the previous periods have been adjusted according to IFRS
3) Rolling 12 month
SUMMARY OF FINANCIAL PERFORMANCE IN JANUARY-MARCH 2012
During the first quarter of 2012, Cramo Group's consolidated sales were EUR
160.0 (144.2) million, showing an increase of 10.9 per cent. In local
currencies, sales growth was 10.5 per cent, while the organic growth was 4.7
per cent. Growth was achieved in all markets.
EBITA to EUR 10.6 (2.5) million, or 6.6 (1.7) per cent of sales. EBITA
excluding the non-recurring items was EUR 8.4 (4.5) million, or 5.2 (3.1) per
cent of sales. Non-recurring items included a net capital gain from a business
transaction relating to the modular space business totalling EUR 2.2 million,
while in the comparison period non-recurring items included EUR 2.1 million of
non-recurring costs relating to the acquisition of Theisen Group.
EBITDA was EUR 36.2 (25.3) million, or 22.6 (17.6) per cent of sales.
In Finland and Sweden, a good profit was achieved, considering it was the
winter season. In Norway and Eastern Europe, profits improved considerably from
last year. In Central Europe, profitability was weakened by an exceptionally
cold winter season.
During the period under review, Cramo sold its modular space production and
customised modular space rental businesses in Finland to MB funds. In 2011, the
sales of the businesses divested were approximately EUR 31 million. According
to Cramo's strategy, owning manufacturing capacity is considered as a non-core
activity to the Group. Cramo continues the standardised modular space rental
business and its expansion in the Nordic countries and in Central and Eastern
Europe.
Cash flow from operating activities developed favourably and was EUR 17.8 (3.6)
million. Gross capital expenditure was EUR 24.3 (91.3) million and the net cash
flow from investing activities EUR -0.7 (-48.9) million.
Cash flow after investments was EUR 17.1 (-45.2) million.
The Group's gearing continued to decrease, amounting to 77.4 (124.2) per cent
at the end of March.
After a period of strong growth, Cramo's focus in 2012 is on optimising its
profitability and cash flow.
MODERATE GROWTH EXPECTED IN THE RENTAL SECTOR IN 2012
General economic uncertainty is still at a high level in Europe. So far the
uncertainty has not had any significant effects on Cramo's business.
Euroconstruct, the construction market analyst, predicted in its
November-December market forecast a two per cent decline for construction
activity in Finland in 2012. However, VTT Technical Research Centre of Finland
predicts a growth rate of four per cent for equipment rental in Finland. For
construction in Sweden, Norway, Denmark and Germany, Euroconstruct forecasts
growth ranging between two and six per cent in 2012. Equipment rental is
expected to grow more than construction activity. In Eastern Europe, the
outlook is positive, particularly in Russia, Poland and Estonia.
Cramo is maintaining contingency plans for the event of a weaker market in the
second half of 2012.
Cramo believes that in spite of the general economic uncertainty, rental
services continue to be a growth industry. Arrangements whereby companies
outsource their equipment fleet to a rental service company are attractive to
many companies, especially in periods of uncertainty.
GUIDANCE ON GROUP OUTLOOK
The Group's guidance for 2012 remains unchanged: “In 2012, the Group's sales
will grow and the EBITA margin will improve compared with 2011. Gearing will
decrease due to positive cash flow.”
Sales growth was decreased by the sale of the modular space production and
customised modular space rental businesses in Finland.
CEO'S COMMENT
“The start of the year 2012 has been in line with our expectations. Demand for
equipment rental has remained high in most of our market areas, and the prices
have improved as well.
During the first quarter of the year, Finland, Sweden and Eastern Europe have
improved their profits. In Norway, adjustments started to yield visible results
as profitability improved considerably. I expect that profit will improve in
Denmark during the year, too, in spite of the weak start to the year there.
In our business, the first quarter of the year is almost always the weakest.
Due to the composition of the rental fleet, seasonal fluctuations in Central
Europe are greater than on Cramo's other markets. In January and February, the
harsh winter conditions slowed construction activity down both in Germany and
in many of the Central and Eastern European countries. In March, demand picked
up nicely and I am confident that profit for the whole year will also improve
in these markets year-on-year.
In order to develop modular space solutions, we decided to divest the modular
space production and customised modular space rental businesses in Finland. The
divestment supports Cramo's strategy, which considers owning manufacturing
capacity as a non-core activity to the Group. The divestment frees up resources
for the core modular space business, which is the standardised space rental
business. In the past few years, we have made major investments in developing
this business and we are continuing our efforts to expand the standardised
space offering both in the Nordic countries and in Central and Eastern Europe.
I am confident that our profit for the whole year will improve year-on-year,
despite the fact that there are still uncertainties related to the second half
of 2012,” says Vesa Koivula, President and CEO of Cramo Group.
SALES AND PROFIT
Cramo Group's consolidated sales were EUR 160.0 (144.2) million, showing an
increase of 10.9 per cent. In local currencies, sales growth was 10.5 per cent,
while the organic growth was 4.7 per cent. Growth was achieved in all markets.
Cramo Group presents the net capital gain from the sale of used equipment
rental fleet in other operating income. The net capital gain for equipment
rental fleet was EUR 0,2 (0,4) million. Other operating income also includes a
non-recurring net capital gain from the sale of the modular space production
and customised modular space rental businesses in Finland, totalling EUR 2.2
million.
EBITA was EUR 10.6 (2.5) million, or 6.6 (1.7) per cent of sales. EBITDA was
EUR 36.2 (25.3) million, or 22.6 (17.6) per cent of sales.
EBITA excluding the non-recurring items was EUR 8.4 (4.5) million, or 5.2 (3.1)
per cent of sales. Non-recurring items included the afore mentioned net capital
gain totalling EUR 2.2 million, while in the comparison period non-recurring
items included EUR 2.1 million of non-recurring costs relating to the
acquisition of Theisen Group. In Finland and Sweden, a good profit was
achieved, considering it was the winter season. In Norway and Eastern Europe,
profits improved considerably from last year. In Central Europe, profitability
was weakened by an exceptionally cold winter season. Towards the end of the
period, profit development improved in Central Europe, but the overall profit
for the period was clearly negative.
EBIT was EUR 7.6 (-0.2) million, or 4.7 (-0.2) per cent of sales. Profit before
taxes was EUR 2.4 (-4.0) million and profit for the period EUR 1.8 (-6.0)
million.
The Group's credit losses and credit loss provisions were EUR 1.3 (1.0)
million. The result also includes impairment losses on the fleet totalling EUR
0.3 (0.3) million.
Expenses associated with options totalled EUR 0.9 (0.7) million.
Net finance costs were EUR 5.2 (3.7) million. The net finance costs in the
previous year were positively affected by fair value realisation of interest
rate swaps.
Earnings per share were EUR 0.04 (-0.17) and diluted earnings per share were
EUR 0.04 (-0.17).
Return on investment (rolling 12 months) was 7.3 (3.5) per cent and return on
equity (rolling 12 months) 7.3 (-0.2) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION
Gross capital expenditure for the period was EUR 24.3 (91.3) million, of which
EUR 0.0 (72.7) million relates to acquisitions and business combinations. The
investment level was decreased from last year, as planned.
Reported depreciation on equipment and intangible assets was EUR 25.6 (22.9)
million. Amortisation on intangible assets resulting from acquisitions totalled
EUR 3.0 (2.7) million.
At the end of the period, goodwill totalled EUR 166.2 (159.4) million.
FINANCIAL POSITION AND BALANCE SHEET
In January-March, cash flow from operating activities was EUR 17.8 (3.6)
million. Cash flow from investing activities was EUR -0.7 (-48.9) million and
cash flow from financing activities EUR -28.2 (39.6) million. The Group's cash
flow after investments was EUR 17.1 (-45.2) million.
At the end of the period, the Group's balance sheet included EUR 6.1 (7.1)
million of assets available for sale.
Theisen Group's pension liability was EUR 1.3 (1.6) million, which is presented
in provisions on the balance sheet.
On 31 March 2012, Cramo Group's net interest-bearing liabilities totalled EUR
374.7 (462.6) million. Net interest-bearing liabilities decreased from the
previous quarter thanks to the positive cash flow. At the end of the period,
gearing was 77.4 (124.2) per cent. Gearing was impaired by decisions made in
the period with regard to dividends and payment of hybrid bond interests.
Of the Group's variable rate loans, EUR 182.2 (181.5) million were hedged by
way of interest rate swaps on 31 March 2012. Hedge accounting is applied to EUR
145.6 (105.1) million of these interest rate hedges. On 31 March 2012, Cramo
Group had undrawn committed credit facilities (excluding leasing facilities) of
EUR 178.3 (111.7) million, of which non-current facilities represented EUR
163.0 (96.0) million and current facilities EUR 15.3 (15.7) million.
Property, plant and equipment amounted to EUR 612.5 (560.4) million of the
balance sheet total. Growth is due to organic investments and business
combinations. The balance sheet total on 31 March 2012 was EUR 1,097.3
(1,059.8) million and the equity ratio was 44.5 (35.5) per cent.
Rental liabilities associated with off-balance sheet operational leasing
agreements totalled EUR 40.3 (58.3) million on 31 March 2012. Off-balance sheet
liabilities for office and depot rents totalled EUR 124.6 (113.4) million. The
Group's investment commitments amounted to EUR 17.5 (46.1) million, of which
the majority is related to the acquisition of modular space.
GROUP STRUCTURE
Cramo Plc is a service company specialising in equipment rental services, as
well as the rental and sale of modular space. Its equipment rental services
comprise construction machinery and equipment rentals and rental-related
services. These rental-related services include construction site and
installation services. Cramo Plc is one of the industry's leading service
providers in the Nordic countries and Central and Eastern Europe.
At the end of the period under review, Cramo Group consisted of the parent
company Cramo Plc, which provides group-level services, and, as operating
companies, its wholly-owned subsidiaries in Finland, Sweden, Norway, Denmark,
Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Russia,
Germany, Austria, Switzerland and Hungary. Cramo Plc also owns a financing
company in Belgium, a company in Sweden which offers group-level services and
Cramo Management Oy, which owns 316,288 Cramo Plc shares.
At the end of the period, equipment rental services were provided through a
network of 406 (381) depots, of which 75 (74) were entrepreneur-managed.
BUSINESS DEVELOPMENT AND STRATEGIC TARGETS
During the period under review, Cramo Plc's wholly owned subsidiaries Cramo
Production Oy and Cramo Finland Oy signed an agreement with Profipri Oy and
Randum Oy, managed by MB Funds, whereby they will purchase Cramo Production
Oy's modular space production business in Finland and Cramo Finland Oy's
customised modular space rental business. The transaction came into effect on
30 March 2012.
Cramo Production had approximately 160 employees and its sales were about EUR
26 million in 2011. The divestment supports Cramo's strategy, which considers
owning manufacturing capacity as a non-core activity to the Group. The
customised modular space rental business of Cramo Finland comprised modular
units that are used mainly in the public and industrial sectors and that have
been customised to the specific needs of customers. The sales of the rental
business to be divested were about EUR 5 million in 2011. After this
divestment, Cramo no longer operates in customised modular space rental in
Finland.
According to its strategy, Cramo continues the standardised modular space
rental business and its expansion in the Nordic countries and in Central and
Eastern Europe.
Cramo's strategic targets for 2010-2013 are to be the customers' first choice
as well as the “Best in town” in the rental business. Other strategic targets
are to grow profitably faster than the market and to act as a driver of rental
development.
Cramo Group's financial targets for 2010-2013 are as follows: sales growth
above 10 per cent per annum, EBITA margin above 15 per cent of sales, return on
equity (ROE) above 15 per cent and maximum gearing at 100 per cent.
Achieving the strategic targets requires the roll-out of a uniform Cramo Rental
Concept and harmonised key processes in all markets, the roll-out of the “best
in town” strategy in existing and new geographical areas in Europe and
expanding the modular space business outside Finland and Sweden more strongly
than before. Cramo believes to have strengthened its competitiveness in the
past few years thanks both development projects based on the Group strategy and
corporate acquisitions.
CHANGES IN MANAGEMENT
Mr Finn Løkken, Managing Director of Cramo's operations in Norway, announced in
December that he would resign from his position to pursue career opportunities
outside the rental industry. Mr. Göran Carlson, Deputy CEO of Cramo Group, will
act as the temporary Managing Director for the Norwegian operations until 1 May
2012 when Mr Bent Nygren (52, M.Sc. Civ. Eng.) will start working in this
position. Mr Nygren has long-term experience of management positions in trade
and industry sectors providing services for the construction business. In
connection with the sale of the customised modular space business, Mr Ossi
Alastalo, Senior Vice President, Fleet Management/Modular Space, became the
Managing Director of the companies that acquired the business as of 1 April
2012.
At the end of the period under review, Cramo Group's Executive Committee was
composed of the following persons: Mr Vesa Koivula, President and CEO of Cramo
Group, Mr Göran Carlson, Deputy CEO, and Mr Martti Ala-Härkönen, CFO. The other
members of the Group management team were Mr Tatu Hauhio, Senior Vice
President, Finland; Mr Erik Bengtsson, Senior Vice President, Sweden; Mr Jarmo
Laasanen, Senior Vice President, Baltic countries and Russia; Mr Dirk
Schlitzkus, Senior Vice President, Central Europe; Mr Martin Holmgren, Vice
President, Fleet Management/Equipment Rental; and Mr Per Lundquist, Vice
President, CIO.
HUMAN RESOURCES
During the period under review, Group staff averaged 2,721 (2,356). In
addition, the Group employed some 164 (113) persons as hired work force. At the
end of the period, Group staff numbered 2,736 (2,457) as full time equivalent
(FTE).
The geographical distribution of personnel at the end of the period was as
follows: Finland, 653 (628) employees; Sweden, 818 (704); Norway, 222 (189);
Denmark, 121 (119); Central Europe, 299 (275); and Eastern Europe, 622 (542).
PERFORMANCE BY BUSINESS SEGMENT
Cramo Group's business segments consist of Finland, Sweden, Norway, Denmark,
Central Europe, which includes Germany, Switzerland, Austria and Hungary, and
Eastern Europe, which includes Estonia, Latvia, Lithuania, Poland, the Czech
Republic, Slovakia and Russia. In addition to segment information, Cramo also
reports on the order book value for modular space.
Finland generated 18.2 (19.3) per cent of the total consolidated sales for
January-March 2012 (excluding inter-segment sales), Sweden 48.0 (46.6) per
cent, Norway 12.9 (13.8) per cent, Denmark 5.1 (4.3) per cent, Central Europe
7.3 (7.3) per cent and Eastern Europe 8.6 (8.8) per cent. The Central European
business segment consisting of Theisen Group became part of Cramo Group on 1
February 2011.
Finland
Finland (EUR 1,000) 1-3/12 1-3/11 Change % 1-12/11
--------------------------------------------------------
Sales 29,348 28,191 4.1 % 127,565
--------------------------------------------------------
EBITA 2,949 2,176 35.6 % 20,238
--------------------------------------------------------
EBITA-% 10.0 % 7.7 % 15.9 %
--------------------------------------------------------
No of employees (FTE) 630 609 3.4 % 623
--------------------------------------------------------
No of depots 55 55 0.0 % 55
--------------------------------------------------------
The Finnish operations reported sales of EUR 29.3 (28.2) million for
January-March, an increase of 4.1 per cent. EBITA was EUR 2.9 (2.2) million, or
10.0 (7.7) per cent of sales.
Sales and profit increased as a result of demand remaining at a good level and
improvement of cost efficiency. In construction, demand continued to be steady,
but the number of new building permits granted has decreased. In industrial
investments, the strongest demand was observed in the energy and mining
sectors. Demand for modular spaces continued at a steady level as well.
During the period under review, Cramo sold its modular space production and
customised modular space rental businesses to MB Funds. The capital gain from
this business transaction has no impact on the profit of the Finnish
operations; it will be reported under “Group's non-allocated capital gains and
other income”. Nevertheless, the business transaction decreases sales and EBITA
in euros in Finland during the rest of the year.
Euroconstruct anticipates that construction activity in Finland will decline by
about two per cent in 2012. The Confederation of Finnish Construction
Industries RT expects construction investments to remain at the previous year's
level. Construction activity is expected to continue at a moderately good level
in the first half of 2012, thanks to projects already underway. In the second
half of the year, construction activity will probably start to decline, except
in renovation projects. VTT Technical Research Centre of Finland predicts a
growth rate of four per cent for equipment rental in 2012.
The number of depots at the end of the period under review was 55 (55). Cramo's
strategic target in Finland is to increase its market share, both in the
construction industry and in the industrial maintenance sector, and to restore
profitability to the pre-downturn level.
Sweden
Sweden (EUR 1,000) 1-3/12 1-3/11 Change % 1-12/11
--------------------------------------------------------
Sales 77,457 68,101 13.7 % 308,949
--------------------------------------------------------
EBITA 12,881 9,344 37.8 % 58,047
--------------------------------------------------------
EBITA-% 16.6 % 13.7 % 18.8 %
--------------------------------------------------------
No of employees (FTE) 780 664 17.5 % 791
--------------------------------------------------------
No of depots 126 119 5.9 % 128
--------------------------------------------------------
The demand for construction and equipment rental services in Sweden continued
to grow. The Swedish operations reported sales of EUR 77.5 (68.1) million for
January-March, an increase of 13.7 per cent. In the local currency, growth was
13.6 per cent. Sales increased as a result of a good construction market
situation, increasing co-operation with several major customers and the
Tidermans acquisition completed in the middle of the previous year.
Profitability continued to develop favourably. EBITA was EUR 12.9 (9.3)
million, or 16.6 (13.7) per cent of sales.
The full-year forecast for construction growth in Sweden in 2012, published by
Euroconstruct in November, is slightly over two per cent. In February 2012, the
Swedish Construction Federation estimated that construction activity would
decrease by approximately one per cent from the previous year. Residential
construction is expected to decline, while growth is expected in commercial and
office construction. ERA predicts growth of some seven per cent for equipment
rental.
Cramo is the clear market leader in the Swedish equipment rental business. At
the end of the period, Cramo had 126 (119) depots in Sweden. Cramo's strategic
targets in Sweden for 2010-2013 are efficiency and profitability improvement in
particular, as well as achieving the “Best in town” position in all areas.
Norway
Norway (EUR 1,000) 1-3/12 1-3/11 Change % 1-12/11
--------------------------------------------------------
Sales 20,798 20,204 2.9 % 79,265
--------------------------------------------------------
EBITA 923 415 122.3 % 857
--------------------------------------------------------
EBITA-% 4.4 % 2.1 % 1.1 %
--------------------------------------------------------
No of employees (FTE) 222 189 17.5 % 221
--------------------------------------------------------
No of depots 34 29 17.2 % 34
--------------------------------------------------------
The construction sector in Norway has begun to recover, driven by the oil and
gas industry. The Norwegian operations reported sales of EUR 20.8 (20.2)
million for January-March, an increase of 2.9 per cent. In the local currency,
the change was -0.2 per cent. As a result of its turnaround plan Cramo has cut
weakly performing business in Norway.
EBITA was EUR 0.9 (0.4) million, or 4.4 (2.1) per cent of sales. Profitability
improved, thanks to the turnaround plan and the improved market situation, and
is expected to develop favourably during the rest of the year as well.
Euroconstruct and Prognosesenteret estimate that construction activity will
grow by 6-7 per cent in Norway in 2012. Strong construction activity is
expected to continue in the oil and gas industry and, in relation to that, in
shipbuilding. Residential construction and civil engineering are also expected
to grow. ERA predicts growth of eight per cent for equipment rental.
At the end of the period under review, Cramo had 34 (29) depots in Norway.
Cramo's strategic targets in Norway are to improve its profitability, be the
“Best in town” and achieve growth both organically and through acquisitions.
Denmark
Denmark (EUR 1,000) 1-3/12 1-3/11 Change % 1-12/11
----------------------------------------------------------
Sales 8,189 6,257 30.9 % 34,965
----------------------------------------------------------
EBITA -1,445 -1,634 11.6 % -2,132
----------------------------------------------------------
EBITA-% -17.6 % -26.1 % -6.1 %
----------------------------------------------------------
No of employees (FTE) 121 119 1.7 % 124
----------------------------------------------------------
No of depots 18 17 5.9 % 20
----------------------------------------------------------
In Denmark, construction activity has developed favourably, mainly thanks to
renovation projects.
The Danish operations reported sales of EUR 8.2 (6.3) million, an increase of
30.9 per cent. Sales increased as a result of significant modular space sales
deliveries for the Copenhagen metro project. Rental business grew by more than
10 per cent.
EBITA was EUR -1.4 (-1.6) million, or -17.6 (-26.1) per cent of sales. The
result includes EUR 0.2 million of non-recurring expenses related to the
closing of depots and other adjustments.
During the period, the depot network was optimised by closing two depots and
transferring fleet to the depots where demand is highest. Fleet utilisation
rates are good in Denmark, but the prices in the market are still low. Cramo
seeks profitability improvement in particular by centralising operations and
raising rental rates.
After the period-end, Cramo received a significant long-term modular space
rental contract from the Copenhagen metro project.
Euroconstruct estimates that the Danish construction market will grow by almost
four per cent in 2012 and that growth will be relatively evenly divided between
residential construction, commercial and office construction and civil
engineering. Dansk Byggeri anticipates that growth will remain at the previous
year's level. ERA predicts growth of some six per cent for equipment rental.
Growth in the rental business is supported by the more restricted financial
market, making renting a more attractive alternative for construction
companies, as well as by the strong upturn in renovation projects. Currently,
one of the most significant new construction projects is the expansion of the
Copenhagen metro.
At the end of the period under review, Cramo had 18 (17) depots in Denmark.
Cramo's key objectives in Denmark are to increase profitability and to achieve
the “best in town” position in selected areas. The Group will seek growth in
the modular space business in particular.
Central Europe
Central Europe (EUR 1,000) 1-3/12 1-3/11 Change % 1-12/11
---------------------------------------------------------------
Sales 11,782 10,612 11.0 % 71,213
---------------------------------------------------------------
EBITA -4,314 -1,189 -262.9 % 3,708
---------------------------------------------------------------
EBITA-% -36.6 % -11.2 % 5.2 %
---------------------------------------------------------------
No of employees (FTE) 299 275 8.7 % 295
---------------------------------------------------------------
No of depots 96 95 1.1 % 96
---------------------------------------------------------------
Cramo Group's equipment rental business sales in Central Europe come from the
German, Swiss and Austrian markets. There is also one depot in Hungary.
Since the focus of the rental fleet in Central Europe is on construction
machinery, the segment is more strongly affected by seasonal fluctuations than
Cramo's other business segments. Demand picked up in March, and the market
outlook for the whole year is positive.
The Central European operations reported sales of EUR 11.8 (10.6) million.
EBITA was EUR -4.3 (-1.2) million, or -36.6 (-11.2) per cent of sales. As the
business segment was formed on 1 February 2011, comparison period data is
available for two months only.
According to the estimate published by Euroconstruct, construction activity in
Germany will increase by some two per cent in 2012. In Switzerland and Austria,
market growth is estimated at one to three per cent. ERA predicts growth of
five to six per cent for equipment rental in Germany in 2012.
At the end of the period, the number of Cramo's depots in Central Europe was 96
(95). Cramo's strategic target in Central Europe is to expand its product and
service offering in stages according to the Cramo Concept and to improve
profitability.
Eastern Europe
Eastern Europe (EUR 1,000) 1-3/12 1-3/11 Change % 1-12/11
--------------------------------------------------------------
Sales 13,870 12,869 7.8 % 66,575
--------------------------------------------------------------
EBITA -801 -2,218 63.9 % 1,708
--------------------------------------------------------------
EBITA-% -5.8 % -17.2 % 2.6 %
--------------------------------------------------------------
No of employees (FTE) 622 541 15.0 % 589
--------------------------------------------------------------
No of depots 77 66 16.7 % 76
--------------------------------------------------------------
Cramo Group's equipment rental business sales in Eastern Europe come from
Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia.
The Eastern European operations reported sales of EUR 13.9 (12.9) million for
January-March, an increase of 7.8 per cent. In local currencies, the change in
sales was 9.1 per cent,
EBITA was EUR -0.8 (-2.2) million, or -5.8 (-17.2) per cent of sales. The
improvements in profitability were due to higher fleet utilisation rates, the
recovery of the markets and price levels, and adjustments made earlier.
In Russia, Cramo's business developed favourably in all areas. Cramo has signed
new agreements both with Finnish and international construction companies. As
for individual product areas, the most positive development has occurred in
demand for modular space.
Business development was favourable in the Baltic countries too. In Estonia,
energy-related investments and other public projects in particular drive the
growth in construction activity.
The harsh winter conditions in Central Europe reduced construction activity and
demand for rental services in Poland, the Czech Republic and Slovakia. However,
towards the end of the period demand picked up. In Poland, civil engineering
and other public investments continue to grow, but as the overall economic
situation is becoming more restricted, growth is slowing down.
VTT expects construction activity in Estonia to grow by eight per cent in 2012
but to decline by some four per cent in Latvia and Lithuania. In Russia and
Poland, the construction market is expected to grow by about four per cent. ERA
predicts growth of 14 per cent for equipment rental in Poland in 2012. In the
Czech Republic, construction activity is expected to decline and according to
local forecasts, construction activity in Slovakia will also decline clearly in
2012.
Cramo's strategic target in Eastern Europe is to grow profitably faster than
the market and to be the “Best in town” rental service provider in each market.
At the end of the period, the number of depots in Eastern Europe was 77 (66).
SHARES AND SHARE CAPITAL
On 31 March 2012, Cramo Plc's share capital as registered in the Finnish Trade
Register was EUR 24,834,753.09 and the number of shares was 41,561,741. Cramo
Plc holds 316,288 of these shares through its subsidiary, Cramo Management Oy.
As a result of subscriptions made under the stock option rights 2006C, the
number of Cramo Plc shares increased by 122,655 new shares in the first
quarter. Of these new shares, the 2,600 shares subscribed in December 2011 were
registered in the Trade Register on 13 January 2012 and the 120,055 shares
subscribed in January-March 2012 were registered on 27 March 2012.
CURRENT OPTION PROGRAMMES AND INCENTIVE SCHEMES
On 31 March 2012, Cramo Group's key personnel held a total of 876,500 stock
options 2006C, 857,000 stock options 2009, 934,500 stock options 2010 and
964,000 stock options 2011.
The share-specific subscription price after dividends distributed in 2012 (EUR
0.30) is as follows: for stock options 2006C, EUR 6.17; for stock options 2009,
EUR 10.55; for stock options 2010, EUR 13.42; and for stock options 2011, EUR
7.00. In the 2006, 2009 and 2010 option programmes each stock option entitles
the holder to subscribe for 1.3 new Cramo Plc shares. In the 2011 option
programme each stock option entitles the holder to subscribe 1 new share.
Under the authorisation of the Annual General Meeting of Shareholders, the
Board of Directors has decided to launch an employee share savings plan (ESSP)
to be offered to all Cramo employees. The objective of the ESSP is to
strengthen the ties between the Cramo shareholders and employees by encouraging
all Cramo employees to become and remain shareholders in the company.
In the ESSP, employees are offered an opportunity to save a maximum of 5 per
cent of their salary and the accumulated savings are used for share purchases.
After approximately 3 years, each participant is awarded 1 matching share from
the company free of charge for every 2 shares purchased, provided that the
shares purchased initially are retained and the participant's employment
continues.
The plan is to be offered to eligible employees in countries where there are no
legal, tax or administrative restraints on participation. The plan is to be
launched in October 2012.
The Board of Directors of Cramo Plc has also decided on a new share-based
incentive plan for the Group's key employees. Its aim is to combine the
objectives of the shareholders and key employees in order to increase the value
of the company, to commit key employees to the company, and to offer them a
competitive reward plan based on long-term shareholding in the company.
The new Performance Share Plan is intended to consist of three discretionary
periods, the calendar years 2012, 2013 and 2014. The Board of Directors of the
company will decide on the Plan's performance criteria and on their targets.
The potential reward from the Plan for the discretionary period 2012 would be
based on Cramo Group's earnings per share (EPS) key indicator and it would be
paid in spring 2015.
Regarding Group Management Team members the target of the Plan is that the
person's share ownership in Cramo would equal at least to his or her annual
gross salary.
ANNUAL GENERAL MEETING 2012 AND BOARD AUTHORISATIONS
Cramo Plc's Annual General Meeting of Shareholders held on 23 March 2012
adopted the consolidated financial statements and the parent company's
financial statements for the financial year 2011 and discharged the members of
the Board of Directors and the CEO from liability. The Annual General Meeting
decided, as proposed by the Board of Directors, that a dividend of EUR 0.30 per
share be paid. The dividend was paid on 4 April 2012.
The number of members of the Board of Directors was confirmed as seven. Mr Stig
Gustavson, Mr J.T. Bergqvist, Ms Helene Biström, Mr Eino Halonen, Mr Victor
Hartwall, Mr Jari Lainio and Mr Esko Mäkelä were re-elected as members of the
Board of Directors.
In its organisation meeting held on 23 March 2012, the Board of Directors
elected Mr Stig Gustavson as the chairman and Mr Eino Halonen as the deputy
chairman. Mr Eino Halonen (chairman), Mr J.T. Bergqvist and Mr Esko Mäkelä were
elected to the Audit Committee. Mr Stig Gustavson (chairman), Ms Helene
Biström, Mr Victor Hartwall and Mr Jari Lainio were elected to the Nomination
and Compensation Committee.
The Annual General Meeting confirmed the remuneration payable to the chairman
of the Board of Directors as EUR 70,000, to the deputy chairman as EUR 45,000
and to the other members of the Board as EUR 35,000 per annum. It was further
decided that 50 per cent of the annual remuneration would be paid in Cramo Plc
shares purchased on the market on behalf of the Board members. The remuneration
can also be paid by transferring the company's own shares or entirely in cash.
In addition, Board members are entitled to an attendance fee of EUR 1,000 for
attendance at each committee meeting, and reasonable travel expenses will be
refunded.
The Annual General Meeting decided that the auditors shall be paid a reasonable
remuneration in accordance with the auditors' invoice approved by the Board of
Directors. Ernst & Young Oy, a firm of authorised public accountants, was
appointed as Cramo Plc's auditor, with Mr Erkka Talvinko, APA, as the
responsible auditor.
The Annual General Meeting authorised the Board of Directors to decide on the
repurchase of the company's own shares and/or their acceptance as pledge. The
number of own shares to be acquired and/or accepted as pledge shall not exceed
4,100,000. Own shares may only be acquired using the company's unrestricted
equity. Own shares can be acquired at a price formed in public trading on the
date of the repurchase or otherwise formed on the market. Own shares can be
acquired using derivatives and otherwise than in proportion to the
shareholdings of the shareholders (directed repurchase). Own shares can be
acquired and/or accepted as pledge, among other things, to limit the dilutive
effects of share issues carried out in connection with possible acquisitions,
to develop the company's capital structure, to be transferred in connection
with possible acquisitions, to be used in the company's incentive schemes or to
be cancelled, provided that the acquisition is in the interests of the company
and its shareholders. No more than 400,000 shares acquired by the company under
this authorisation may be used in the company's incentive schemes. The
authorisation is effective until the close of the next Annual General Meeting
of Shareholders, or no later than 23 September 2013.
The Annual General Meeting authorised the Board of Directors to decide on the
transfer of the company's own shares as follows: Under the authorisation, a
maximum of 4,100,000 shares can be transferred. Shares may be transferred in
one or more tranches. The Board of Directors decides on all terms of the
transfer of own shares. The transfer of the company's own shares may be carried
out in deviation from the shareholders' pre-emptive right, provided that there
is a weighty financial reason for the company to do so. The Board of Directors
can act on this authorisation in order to grant option rights and special
rights conferring entitlement to shares, pursuant to Chapter 10 of the Finnish
Limited Liability Companies Act. The authorisation can also be used for
incentive schemes, but not more than 400,000 shares in total, together with the
authorisation in the following item. The authorisation is valid for five years
from the decision of the Annual General Meeting.
The Annual General Meeting authorised the Board of Directors to decide on a
share issue as well as on the granting of option rights and other special
rights conferring entitlement to shares, pursuant to Chapter 10 of the Finnish
Limited Liability Companies Act, as follows: The shares issued under the
authorisation are new shares of the company, and a maximum of 4,100,000 shares
can be issued. The shares or special rights conferring entitlement to shares
can be issued can be issued in one or more tranches. These option rights cannot
be used for incentive programmes. The Board of Directors may also decide on
issuing new shares to the company itself. Such shares can, among other things,
be transferred under the authorisation of the Board of Directors to decide on
transfer of the company's own shares. The Board of Directors was authorised to
decide on all terms for the share issue and the granting of special rights
conferring entitlement to shares. The share issue and granting of special
rights may be carried out in deviation from the shareholders' pre-emptive
right, provided that there is a weighty financial reason for the company to do
so. The authorisation can also be used for incentive schemes, but not more than
400,000 shares in total together with the authorisation in the previous item.
The authorisation is valid for five years from the decision of the Annual
General Meeting.
The Annual General Meeting authorised the Board of Directors to decide on
donations to a total maximum amount of EUR 20,000 for charitable or
corresponding purposes, and on the donation recipients, purposes of use and
other terms of the donation. The authorisation is effective until the close of
the next Annual General Meeting of Shareholders.
CHANGES IN SHAREHOLDINGS
During the period under review, there were no changes in shareholdings
exceeding the flagging threshold.
ESSENTIAL RISKS AND UNCERTAINTIES
In addition to global economic developments, the main sources of uncertainty in
Cramo's business are related to the economic cycles and financial development
of each country, fluctuations in interest and exchange rates, availability of
financing, credit loss risks, the success of the Group's acquisitions and
information system projects, personnel-related risks, availability of competent
management and recruitment-related risks, tax risks and other business risks
As a result of the economic downturn, the risks related to rental prices in
different markets as well as credit loss risks have increased. In addition, the
downturn increased the impairment risks to the balance sheet values resulting
from acquisitions.
The recent debt crisis in certain euro zone countries has increased the
uncertainty of near-term economic development in Europe, which has increased
the levels of risks associated with Cramo's business operations. The economic
uncertainty may be visible in Cramo's operations as a weakening demand on one
or several market areas, fiercer competition, lower rental prices, higher
finance costs or customers experiencing financial difficulties.
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
No significant events have occurred after the balance sheet date.
ACCOUNTING PRINCIPLES
This Interim Report has been prepared in accordance with IAS 34: Interim
Financial Reporting. In the preparation of this Interim Report, Cramo has
applied the same accounting principles as in its financial statements for 2011.
Figures in this Interim Report are unaudited.
CONSOLIDATED BALANCE SHEET (EUR 1,000) 31 Mar 2012 31 Mar 2011 31 Dec 2011
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
ASSETS
Non-current assets
Tangible assets 612,465 560,423 622,214
-------------------------------------------------------------------------------
Goodwill 166,246 159,411 165,318
-------------------------------------------------------------------------------
Other intangible assets 120,716 121,323 123,250
-------------------------------------------------------------------------------
Deferred tax assets 14,901 15,607 15,312
-------------------------------------------------------------------------------
Available-for-sale financial investments 347 349 350
-------------------------------------------------------------------------------
Shares in joint ventures 49 48
-------------------------------------------------------------------------------
Derivative financial instruments 2,554
-------------------------------------------------------------------------------
Trade and other receivables 1,027 3,789 3,553
-------------------------------------------------------------------------------
Total non-current assets 915,752 863,455 930,043
-------------------------------------------------------------------------------
Current assets
-------------------------------------------------------------------------------
Inventories 16,384 17,698 18,310
-------------------------------------------------------------------------------
Trade and other receivables 140,611 147,633 142,954
-------------------------------------------------------------------------------
Income tax receivables 6,269 6,909 5,563
-------------------------------------------------------------------------------
Derivative financial instruments 359 304 730
-------------------------------------------------------------------------------
Cash and cash equivalents 11,733 16,753 22,532
-------------------------------------------------------------------------------
Total current assets 175,356 189,296 190,089
-------------------------------------------------------------------------------
Assets available for sale 6,140 7,075 6,680
-------------------------------------------------------------------------------
TOTAL ASSETS 1,097,248 1,059,826 1,126,812
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Share capital 24,835 24,835 24,835
-------------------------------------------------------------------------------
Share issue 17
-------------------------------------------------------------------------------
Other reserves 301,517 203,325 300,723
-------------------------------------------------------------------------------
Fair value reserve 119 117 119
-------------------------------------------------------------------------------
Hedging fund -5,632 338 -5,168
-------------------------------------------------------------------------------
Translation differences 3,965 2,639 1,041
-------------------------------------------------------------------------------
Retained earnings 109,888 91,600 123,604
-------------------------------------------------------------------------------
Equity attributable to shareholders 434,691 322,853 445,172
of the parent company
-------------------------------------------------------------------------------
Non-controlling interest
-------------------------------------------------------------------------------
Hybrid capital 49,630 49,630 49,630
-------------------------------------------------------------------------------
Total equity 484,320 372,483 494,802
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Non-current liabilities
Interest-bearing liabilities 281,080 378,467 310,511
-------------------------------------------------------------------------------
Derivative financial instruments 7,543 308 6,775
-------------------------------------------------------------------------------
Deferred tax liabilities 81,989 84,609 85,399
-------------------------------------------------------------------------------
Provisions 1,281 1,448
-------------------------------------------------------------------------------
Other non-current liabilities 855 5,455 3,369
-------------------------------------------------------------------------------
Total non-current liabilities 372,748 468,839 407,502
-------------------------------------------------------------------------------
Current liabilities
-------------------------------------------------------------------------------
Interest-bearing liabilities 105,401 100,858 101,422
-------------------------------------------------------------------------------
Derivative financial instruments 2,578 662 1,838
-------------------------------------------------------------------------------
Trade and other payables 127,860 113,962 116,485
-------------------------------------------------------------------------------
Income tax liabilities 4,342 3,021 4,763
-------------------------------------------------------------------------------
Total current liabilities 240,180 218,504 224,508
-------------------------------------------------------------------------------
Total liabilities 612,928 687,343 632,010
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 1,097,248 1,059,826 1,126,812
-------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT 1-3/12 1-3/11 1-12/1
1 Jan 2012 - 31 Mar 2012 1
(EUR 1,000)
--------------------------------------------------------------------------------
Sales 159,99 144,21 679,89
1 7 2
--------------------------------------------------------------------------------
Other operating income 3,648 1,174 7,697
--------------------------------------------------------------------------------
Change in inventories of finished goods and work in 939 579 -425
progress
--------------------------------------------------------------------------------
Production for own use 3,494 796 10,302
--------------------------------------------------------------------------------
Materials and services -59,87 -54,27 -248,3
3 6 93
--------------------------------------------------------------------------------
Employee benefit expense -36,83 -30,58 -135,7
1 4 51
--------------------------------------------------------------------------------
Other operating expenses -35,20 -36,56 -144,6 4 1 28
--------------------------------------------------------------------------------
Depreciation and impairment on tangible assets and -25,60 -22,89 -97,62
assets available for sale 9 0 4
--------------------------------------------------------------------------------
EBITA 10,555 2,455 71,071
--------------------------------------------------------------------------------
% of sales 6.6 % 1.7 % 10.5 %
--------------------------------------------------------------------------------
Amortisation and impairment on intangible assets -2,978 -2,692 -16,75
resulting from acquisitions 1
--------------------------------------------------------------------------------
Operating profit / loss (EBIT) 7,577 -237 54,320
--------------------------------------------------------------------------------
% of sales 4.7 % -0.2 % 8.0 %
--------------------------------------------------------------------------------
Finance costs (net) -5,223 -3,724 -22,16
9
--------------------------------------------------------------------------------
Income from joint ventures 22
--------------------------------------------------------------------------------
Profit / loss before taxes 2,354 -3,962 32,173
--------------------------------------------------------------------------------
% of sales 1.5 % -2.7 % 4.7 %
--------------------------------------------------------------------------------
Income taxes -560 -2,001 -8,668
--------------------------------------------------------------------------------
Profit / loss for the period 1,795 -5,963 23,505
--------------------------------------------------------------------------------
% of sales 1.1 % -4.1 % 3.5 %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
Equity holder of parent 1,795 -5,963 23,505
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-controlling interest
Profit / loss attributable to equity holders' of parent
Earnings per share, undiluted, EUR 0.04 -0.17 0.60
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.04 -0.17 0.60
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT 1-3/12 1-3/11 1-12/1
1 Jan 2012 - 31 Mar 2012 (EUR 1,000) 1
--------------------------------------------------------------------------------
Profit / loss for the period 1,795 -5,963 23,505
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
-Change in hedging fund, net of tax -464 1,535 -3,971
--------------------------------------------------------------------------------
-Change in exchange rate differences, net of tax 4,408 1,006 301
--------------------------------------------------------------------------------
Total other comprehensive income 3,944 2,541 -3,670
--------------------------------------------------------------------------------
Comprehensive income for the period 5,739 -3,422 19,835
--------------------------------------------------------------------------------
CHANGES IN Share Share Fair Retained Attributa Non-co Hybrid Total
CONSOLIDA capita issue value earnings, ble to ntroll capita equity
TED l and reserv translati equity ing l
STATEMENT other e on holders intere
OF EQUITY reserv differenc of the st
(EUR es es, parent
1,000) hedging company
fund
--------------------------------------------------------------------------------
At 1 Jan 24,835 188,79 117 105,538 319,287 503 49,630 369,42
2011 7 0
--------------------------------------------------------------------------------
Total -3,422 -3,422 -3,422
comprehensive
income
--------------------------------------------------------------------------------
Dividend -3,163 -3,163 -3,163
distribut
ion
--------------------------------------------------------------------------------
Exercise of share 7,262 7,262 7,262
options
--------------------------------------------------------------------------------
Issue of shares 7,266 7,266 7,266
related to
business
combination
--------------------------------------------------------------------------------
Share-base 721 721 721
d payments
--------------------------------------------------------------------------------
Non-controlling 427 427 -503 -76
interest
--------------------------------------------------------------------------------
Hybrid -5,523 -5,523 -5,523
capital
--------------------------------------------------------------------------------
Changes
within
equity
--------------------------------------------------------------------------------
At 31 Mar 24,835 203,32 117 94,577 322,853 49,630 372,48
2011 5 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
At 1 Jan 24,835 300,74 119 119,478 445,172 49,630 494,80
2012 0 2
--------------------------------------------------------------------------------
Total 5,739 5,739 5,739
comprehensive
income
--------------------------------------------------------------------------------
Dividend -12,374 -12,374 -12,37
distribut 4
ion
--------------------------------------------------------------------------------
Exercise of share 776 776 776
options
--------------------------------------------------------------------------------
Share-base 888 888 888
d payments
--------------------------------------------------------------------------------
Hybrid -5,510 -5,510 -5,510
capital
--------------------------------------------------------------------------------
At 31 Mar 24,835 301,51 119 108,221 434,691 49,630 484,32
2012 6 0
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT 1-3/12 1-3/11 1-12/1
1 Jan 2012 - 31 1
Mar 2012 (EUR 1,000)
--------------------------------------------------------------------------------
Net cash flow from operating activities 17,779 3,640 138,49
6
--------------------------------------------------------------------------------
Net cash flow from investing activities -711 -48,86 -193,8
6 04
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Change in interest-bearing receivables 2,527 44 244
--------------------------------------------------------------------------------
Change in finance lease liabilities -9,996 -10,76 -32,94
5 4
--------------------------------------------------------------------------------
Change in interest-bearing liabilities -21,51 43,145 -6,964
1
--------------------------------------------------------------------------------
Hybrid capital -6,000
--------------------------------------------------------------------------------
Proceeds from share options exercised 777 7,262 7,279
--------------------------------------------------------------------------------
Proceeds from share issue 97,397
--------------------------------------------------------------------------------
Non-controlling interest -76 -76
--------------------------------------------------------------------------------
Dividends paid -3,163
--------------------------------------------------------------------------------
Net cash flow from financing activities -28,20 39,610 55,773
3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -11,13 -5,616 465
5
--------------------------------------------------------------------------------
Cash and cash equivalents at period start 22,532 22,313 22,313
--------------------------------------------------------------------------------
Translation differences 336 56 -246
--------------------------------------------------------------------------------
Cash and cash equivalents at period end 11,733 16,753 22,532
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENT LIABILITIES 31 Mar 2012 31 Mar 2011 31 Dec 2011
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Pledges, finance lease 137,162 167,625 148,502
-----------------------------------------------------------------------------
Interest on hybrid capital 4,022
-----------------------------------------------------------------------------
Investment commitments 17,511 46,077 10,431
-----------------------------------------------------------------------------
Commitments to office and depot rents 124,638 113,361 130,880
-----------------------------------------------------------------------------
Operational lease payments 40,328 58,303 45,084
-----------------------------------------------------------------------------
Other commitments 780 648 643
-----------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS 31 Mar 2012 31 Mar 2011 31 Dec 2011
(EUR 1,000)
-----------------------------------------------------------------------
Fair value
-----------------------------------------------------------------------
Interest rate swaps -7,543 2,246 -6,775
-----------------------------------------------------------------------
Currency forwards -2,219 -358 -1,107
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Nominal value
-----------------------------------------------------------------------
Interest rate swaps 182,180 181,453 181,645
-----------------------------------------------------------------------
Currency forwards 192,785 116,287 202,932
-----------------------------------------------------------------------
MODULAR SPACE ORDER BOOK (EUR 1,000) 31 Mar 2012 31 Mar 2011 31 Dec 2011
--------------------------------------------------------------------------------
Value of outstanding orders for modular 81,564 87,581 102,660
space
--------------------------------------------------------------------------------
Value of orders for modular space rental 80,728 82,525 95,615
--------------------------------------------------------------------------------
Value of orders for sale of modular space 836 5,056 7,044
--------------------------------------------------------------------------------
SHARE RELATED KEY FIGURES 1-3/12 1-3/11 1-12/11
--------------------------------------------------------------------------------
Earnings per share (EPS), EUR 1) 0.04 -0.17 0.60
--------------------------------------------------------------------------------
Earnings per share (EPS), diluted, EUR 2) 0.04 -0.17 0.60
--------------------------------------------------------------------------------
Shareholders' equity per share, EUR 3) 10.54 9.22 10.83
--------------------------------------------------------------------------------
Number of shares, end of period 41,561,741 31,949,209 41,439,086
--------------------------------------------------------------------------------
Number of shares, issue-adjusted, average 4) 41,150,783 34,337,199 39,098,751
--------------------------------------------------------------------------------
Number of shares, issue-adjusted, end of 41,245,453 35,024,078 41,122,798
period 4)
--------------------------------------------------------------------------------
Number of shares, diluted by share options, 41,861,441 35,515,384 39,380,527
average
--------------------------------------------------------------------------------
1. Calculated from issue-adjusted average number of shares
2. Calculated from diluted average number of shares
3. Calculated from issue-adjusted number of shares at the end of the period
4. Number of shares deducted by shares held by Cramo Management Oy
INFORMATION PRESENTED BY BUSINESS SEGMENT
The Group's segments are divided geographically and consist of Finland, Sweden,
Norway, Denmark, Central Europe and Eastern Europe.
--------------------
Sales (EUR 1,000) 1-3/12 1-3/11 1-12/11
--------------------------
Finland 29,348 28,191 127,565
----------------------------------------------
Sweden 77,457 68,101 308,949
----------------------------------------------
Norway 20,798 20,204 79,265
----------------------------------------------
Denmark 8,189 6,257 34,965
----------------------------------------------
Central Europe 11,782 10,612 71,213
----------------------------------------------
Eastern Europe 13,870 12,869 66,575
----------------------------------------------
Inter-segment sales -1,453 -2,017 -8,640
----------------------------------------------
Group sales 159,991 144,217 679,892
----------------------------------------------
---------------------------------------------
EBITA (EUR 1,000) 1-3/12 1-3/11 1-12/11
--------------------------
Finland 2,949 2,176 20,238
-----------------------------------------------------------------------
% of sales 10.0 % 7.7 % 15.9 %
-----------------------------------------------------------------------
Sweden 12,881 9,344 58,047
-----------------------------------------------------------------------
% of sales 16.6 % 13.7 % 18.8 %
-----------------------------------------------------------------------
Norway 923 415 857
-----------------------------------------------------------------------
% of sales 4.4 % 2.1 % 1.1 %
-----------------------------------------------------------------------
Denmark -1,445 -1,634 -2,132
-----------------------------------------------------------------------
% of sales -17.6 % -26.1 % -6.1 %
-----------------------------------------------------------------------
Central Europe -4,314 -1,189 3,708
-----------------------------------------------------------------------
% of sales -36.6 % -11.2 % 5.2 %
-----------------------------------------------------------------------
Eastern Europe -801 -2,218 1,708
-----------------------------------------------------------------------
% of sales -5.8 % -17.2 % 2.6 %
-----------------------------------------------------------------------
Non-allocated capital gains and other income 2,196
-----------------------------------------------------------------------
Non-allocated Group activities -2,083 -4,485 -11,756
-----------------------------------------------------------------------
Eliminations 249 45 402
-----------------------------------------------------------------------
Group EBITA 10,555 2,455 71,072
-----------------------------------------------------------------------
% of sales 6.6 % 1.7 % 10.5 %
-----------------------------------------------------------------------
-------------------------------------
Depreciation (EUR 1,000) 1-3/12 1-3/11 1-12/11
--------------------------
Finland -4,526 -4,198 -17,873
---------------------------------------------------------------
Sweden -10,004 -8,930 -36,573
---------------------------------------------------------------
Norway -2,760 -2,385 -10,808
---------------------------------------------------------------
Denmark -1,124 -1,227 -3,988
---------------------------------------------------------------
Central Europe -2,507 -1,402 -8,991
---------------------------------------------------------------
Eastern Europe -4,747 -4,796 -19,512
---------------------------------------------------------------
Non-allocated items and eliminations 60 47 121
---------------------------------------------------------------
Total -25,609 -22,890 -97,624
---------------------------------------------------------------
---------------------------------------------------------
Reconciliation of Group EBITA to earnings before taxes 1-3/12 1-3/11 1-12/1
(EUR 1,000) 1
-----------------------
Group EBITA 10,555 2,455 71,072
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Amortisation and impairment on intangible assets -2,978 -2,692 -16,75
resulting from acquisitions 1
Net finance items -5,223 -3,724 -22,16
9
--------------------------------------------------------------------------------
Share of profit from associate 22
--------------------------------------------------------------------------------
Earnings before taxes 2,354 -3,962 32,173
--------------------------------------------------------------------------------
-------------------------------------
Capital expenditure (EUR 1,000) 1-3/12 1-3/11 1-12/11
------------------------
Finland 5,671 2,490 27,594
-------------------------------------------------------------
Sweden 14,194 9,020 93,519
-------------------------------------------------------------
Norway 1,232 1,265 26,174
-------------------------------------------------------------
Denmark 477 545 5,460
-------------------------------------------------------------
Central Europe 1,315 74,673 90,043
-------------------------------------------------------------
Eastern Europe 1,184 2,935 17,989
-------------------------------------------------------------
Non-allocated items and eliminations 209 343 1,727
-------------------------------------------------------------
Total 24,281 91,272 262,506
-------------------------------------------------------------
-------------------------------------
Assets (EUR 1,000) 31 Mar 2012 31 Mar 2011 31 Dec 2011
--------------------------------------
Finland 154,453 167,184 176,307
---------------------------------------------------------------------------
Sweden 511,031 451,611 507,339
---------------------------------------------------------------------------
Norway 112,445 99,280 112,042
---------------------------------------------------------------------------
Denmark 43,269 46,773 44,376
---------------------------------------------------------------------------
Central Europe 95,009 106,634 95,965
---------------------------------------------------------------------------
Eastern Europe 137,464 141,358 139,431
---------------------------------------------------------------------------
Non-allocated items and eliminations 43,578 46,987 51,352
---------------------------------------------------------------------------
Total 1,097,248 1,059,826 1,126,812
---------------------------------------------------------------------------
QUARTERLY SEGMENT INFORMATION
-------------------------
Sales by segment (EUR 1-3/12 10-12/ 7-9/11 4-6/11 1-3/11 10-12/ 7-9/10
1,000) 11 10
-------------------------------------------------------
Finland 29,348 34,036 34,067 31,271 28,191 30,403 27,430
--------------------------------------------------------------------------------
Sweden 77,457 89,380 78,980 72,488 68,101 74,521 64,839
--------------------------------------------------------------------------------
Norway 20,798 20,996 20,687 17,378 20,204 19,667 17,023
--------------------------------------------------------------------------------
Denmark 8,189 11,253 9,705 7,750 6,257 8,630 8,395
--------------------------------------------------------------------------------
Central Europe 11,782 19,700 20,957 19,945 10,612 0 0
--------------------------------------------------------------------------------
Eastern Europe 13,870 19,453 19,254 14,999 12,869 15,812 14,361
--------------------------------------------------------------------------------
Inter-segment sales -1,453 -1,916 -2,012 -2,695 -2,017 -2,649 -1,693
--------------------------------------------------------------------------------
Group sales 159,99 192,90 181,63 161,13 144,21 146,38 130,35
1 3 7 5 7 4 6
--------------------------------------------------------------------------------
-------------------------
EBITA by segment (EUR 1-3/12 10-12/ 7-9/11 4-6/11 1-3/11 10-12/ 7-9/10
1,000) 11 10
-------------------------------------------------------
Finland 2,949 6,147 7,667 4,248 2,176 3,265 6,105
--------------------------------------------------------------------------------
% of sales 10.0 % 18.1 % 22.5 % 13.6 % 7.7 % 10.7 % 22.3 %
--------------------------------------------------------------------------------
Sweden 12,881 17,964 17,173 13,566 9,344 14,600 12,332
--------------------------------------------------------------------------------
% of sales 16.6 % 20.1 % 21.7 % 18.7 % 13.7 % 19.6 % 19.0 %
--------------------------------------------------------------------------------
Norway 923 588 1,004 -1,150 415 399 310
--------------------------------------------------------------------------------
% of sales 4.4 % 2.8 % 4.9 % -6.6 % 2.1 % 2.0 % 1.8 %
--------------------------------------------------------------------------------
Denmark -1,445 -147 295 -646 -1,634 -6 -831
--------------------------------------------------------------------------------
% of sales -17.6 -1.3 % 3.0 % -8.3 % -26.1 -0.1 % -9.9 %
% %
--------------------------------------------------------------------------------
Central Europe -4,314 326 2,932 1,640 -1,189
--------------------------------------------------------------------------------
% of sales -36.6 1.7 % 14.0 % 8.2 % -11.2
% %
--------------------------------------------------------------------------------
Eastern Europe -801 2,880 2,569 -1,524 -2,218 -1,089 -1,488
--------------------------------------------------------------------------------
% of sales -5.8 % 14.8 % 13.3 % -10.2 -17.2 -6.9 % -10.4
% % %
--------------------------------------------------------------------------------
Non-allocated capital 2,196 0 0 0 0 0 0
gains and other income
--------------------------------------------------------------------------------
Non-allocated Group -2,083 -4,086 -1,281 -1,904 -4,485 -3,072 -1,304
activities
--------------------------------------------------------------------------------
Eliminations 249 132 122 103 45 -42 29
--------------------------------------------------------------------------------
Group EBITA 10,555 23,805 30,479 14,334 2,455 14,056 15,153
--------------------------------------------------------------------------------
% of sales 6.6 % 12.3 % 16.8 % 8.9 % 1.7 % 9.6 % 11.6 %
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS
TEN LARGEST SHAREHOLDERS 31 Mar 2012 SHARES %
-------------------------------------------------------------------------------
1 Hartwall Capital Oy Ab 6,491,702 15.62
-------------------------------------------------------------------------------
2 K. Hartwall Invest Oy 2,232,000 5.37
-------------------------------------------------------------------------------
3 Rakennusmestarien Säätiö (Construction engineers' fund) 2,129,422 5.12
-------------------------------------------------------------------------------
4 Mariatorp Oy 1,250,000 3.01
-------------------------------------------------------------------------------
5 Wipunen varainhallinta Oy 850,000 2.05
-------------------------------------------------------------------------------
6 Odin Finland 847,318 2.04
-------------------------------------------------------------------------------
7 Nordea Nordenfund 807,853 1.94
-------------------------------------------------------------------------------
8 Fondita Nordic Micro Cap 620,000 1.49
-------------------------------------------------------------------------------
9 Ilmarinen Mutual Pension Insurance Company 488,931 1.18
-------------------------------------------------------------------------------
10 Investment fund Aktia Capital 457,458 1.10
-------------------------------------------------------------------------------
Ten largest owners, total 16,174,684 38.92
-------------------------------------------------------------------------------
Nominee registered 7,350,962 17.69
-------------------------------------------------------------------------------
Others 18,036,095 43.40
-------------------------------------------------------------------------------
Total 41,561,741 100.00
-------------------------------------------------------------------------------
There were no material transactions with related parties during the period
under review.
This report includes certain forward-looking statements based on the
management's expectations at the time they were made. These involve risks and
uncertainties and are subject to change due to changes in general economic and
industry conditions.
Vantaa 3 May 2012
Cramo Plc
Board of Directors
BRIEFING
Cramo will hold a briefing and a live webcast at Kämp Kansallissali, address:
Aleksanterinkatu 44 A, 2nd floor, Helsinki, on Friday, 4 May 2012 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 4 May 2012 in the
afternoon.
PUBLICATION OF FINANCIAL INFORMATION
Cramo will publish two more Interim Reports in 2012
The January-June Interim Report will be published on Wednesday, 8 August 2012.
The January-September Interim Report will be published on Wednesday, 31 October
2012.
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 Europe's second largest rental services company specialising in
construction machinery and equipment rental and rental-related services, as
well as the rental and sale of modular space. Cramo operates in fifteen
countries with over 400 depots. With a group staff close to 2.700, Cramo's
consolidated sales in 2011 was EUR 680 million. Cramo shares are listed on the
NASDAQ OMX Helsinki Ltd. Further information: www.cramo.com
© 2024 Nasdaq, Inc. All Rights Reserved |