2016-08-03 08:00:01 CEST
2016-08-03 08:00:01 CEST
REGULATED INFORMATION
Cramo Oyj - Half Year financial report
Cramo’s Half Year Financial Report January–June 2016
Profitable growth continued
Vantaa, Finland, 2016-08-03 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc Half
Year Financial Report 3 August 2016, at 9.00 am (EET)
Cramo’s Half Year Financial Report January–June 2016
Profitable growth continued
4–6/2016 highlights (year-on-year comparison in brackets):
-- Sales EUR 179.1 (161.3) million, up by 11.0%. In local currencies, sales
grew by 11.9%
-- EBITA EUR 26.6 (18.4) million and EBITA margin 14.9% (11.4%)
-- Earnings per share EUR 0.40 (0.23)
1–6/2016 highlights (year-on-year comparison in brackets):
-- Sales EUR 334.5 (308.4) million, up by 8.5%. In local currencies, sales
grew by 9.3%
-- EBITA EUR 39.6 (28.5) million and EBITA margin 11.8% (9.2%)
-- Earnings per share EUR 0.56 (0.32)
-- Return on equity 12.9%
-- Cash flow from operating activities EUR 62.9 (48.4) million and cash flow
after investments EUR -9.5 (-12.4) million
-- Gearing 84.9% (91.2%)
Guidance for 2016 unchanged: In 2016, Cramo Group’s sales will grow in local
currencies and the EBITA margin will improve compared to 2015.
KEY FIGURES AND RATIOS 4-6/16 4-6/15 Change 1-6/16 1-6/15 Change 1-12/1
(MEUR) % % 5
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Income statement
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Sales 179.1 161.3 11.0 % 334.5 308.4 8.5 % 667.9
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EBITDA 53.3 43.7 21.9 % 92.0 78.0 17.9 % 185.7
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EBITA 1) 26.6 18.4 45.0 % 39.6 28.5 38.9 % 84.8
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% of sales 14.9% 11.4% 11.8% 9.2% 12.7%
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Operating profit 25.4 16.2 56.5 % 37.1 24.2 53.1 % 76.7
(EBIT)
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Profit before taxes 22.7 13.0 74.1 % 31.5 17.9 76.0 % 63.8
(EBT)
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Profit for the period 17.9 10.3 74.1 % 24.9 14.2 76.0 % 49.7
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Share related
information
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Earnings per share 0.40 0.23 72.0 % 0.56 0.32 73.7 % 1.13
(EPS), EUR 2)
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Earnings per share 0.40 0.23 72.0 % 0.56 0.32 74.0 % 1.12
(EPS), diluted, EUR
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Shareholders’ equity 10.73 10.42 3.0 % 11.05
per share, EUR
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Other information
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Return on investment, 10.1 % 5.5 % 9.0 %
%
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Return on equity, % 12.9 % 5.7 % 10.5 %
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Equity ratio, % 43.1 % 42.5 % 45.7 %
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Gearing, % 84.9 % 91.2 % 75.1 %
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Net interest-bearing 404.9 420.3 -3.7 % 368.4
liabilities
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Net debt / EBITDA 2.03 2.32 1.98
--------------------------------------------------------------------------------
Gross capital 69.2 46.1 50.0 % 99.8 87.6 13.9 % 175.0
expenditure (incl.
acquisitions)
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of which 4.4 0.0 4.4 8.6 -48.5 % 9.8
acquisitions/business
combinations
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Cash flow from 39.3 44.9 -12.5 % 62.9 48.4 29.9 % 174.9
operating activities
3)
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Cash flow after -5.2 15.5 -9.5 -12.4 35.6
investments
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Average number of 2,521 2,484 1.5 % 2,486
personnel (FTE)
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Number of personnel at 2,565 2,491 3.0 % 2,473
period end (FTE)
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1. The second half of 2015 included EUR 2.0 million costs relating to the
change of the President and CEO and to restructuring in Central Europe.
2. The full-year 2015 comparable earnings per share before the above-mentioned
costs and their tax impact were EUR 1.17.
3. Starting from 2016, the reporting line of unpaid investments in the cash
flow statement has been changed. As a result, the operating cash flow for
period 4-6/2015 decreased by EUR 10.6 million, for period 1–6/2015
decreased by EUR 9.5 million and for period 1–12/2015 decreased by EUR 8.0
million.
Calculation of key figures is presented on page 22.
CEO LEIF GUSTAFSSON’S COMMENT
Good result improvement
“The demand for equipment rental and modular space has developed favourably
this year, and we have succeeded in capitalising on the improved market
situation.
Our sales grew in local currencies by 9.3% in January–June and by 11.9% in the
second quarter. Sales grew in all markets, with the exception of Norway and
Eastern Europe.
Our profitability continued to improve. The January–June EBITA margin increased
from 9.2% to 11.8%. The second-quarter EBITA margin grew from 11.4% to 14.9%.
Profitability improved in Finland, Sweden, Denmark and Central Europe. It is
encouraging that the result for Central Europe turned positive in the second
quarter. It is also worth noting the strong year-on-year profit improvement in
Sweden and of the whole equipment rental product area.
We are continuing the implementation of our focused strategy this year. At the
same time, we have started the preparation of Vision 2020.
On the basis of the current outlook, I expect the demand for equipment rental
and modular space to stay on a good level during the remainder of the year.
Over the long term, the demand for rental services is supported by several
megatrends, such as urbanisation and efforts to achieve sustainable
development. Cramo is in a good position in most of its markets to capitalise
on the opportunities created by the market,” says Leif Gustafsson, Cramo
Group’s President and CEO.
SUMMARY OF FINANCIAL PERFORMANCE IN JANUARY–JUNE
Sales
Cramo Group’s consolidated sales for January–June were EUR 334.5 (308.4)
million, showing an increase of 8.5%. In local currencies, sales grew by 9.3%.
During the first half of the year, sales grew by 16.3% in Finland, by 12.9% in
Sweden (12.4% in local currencies), by 20.8% in Denmark and by 2.8% in Central
Europe. Sales decreased by 12.5% in Norway (-4.7% in local currencies) and by
4.0% in Eastern Europe (-2.7% in local currencies).
As for product areas, sales growth during the first half of the year was 5.7%
(6.5% in local currencies) for equipment rental and 25.7% (26.0% in local
currencies) for modular space. Plenty of new modular space deliveries took
place during the period, which increased the sales of assembly services in
particular. Rental sales of modular space increased by 10.3% year-on-year.
In the second quarter, the Group’s consolidated sales were EUR 179.1 (161.3)
million, growing by 11.0%. In local currencies, sales grew by 11.9%. In the
second quarter, sales grew by 14.0% in Finland, by 17.2% in Sweden (16.9% in
local currencies), by 23.1% in Denmark and by 7.4% in Central Europe. Sales
decreased by 10.8% in Norway (-3.0% in local currencies) and by 3.6% in Eastern
Europe (-2.1 % in local currencies).
As for product areas, sales growth during the second quarter was 8.8% (9.7% in
local currencies) for equipment rental and 25.4% (25.7% in local currencies)
for modular space. In the second quarter, rental sales of modular space
increased by 11.5% year-on-year.
Costs
The Group costs as a share of sales decreased both in the second quarter and
during the entire first half of the year, which had a positive impact on
profitability. During the first half of the year, direct costs (materials and
services) as a share of sales reduced from 34.9% to 34.1%. Indirect costs
(employee benefit expenses and other operating expenses) as a share of sales
decreased from 42.1% to 40.5%. Depreciation and impairment on tangible assets
in relation to sales decreased from 16.1% to 15.7%.
Result
The January–June result and profitability improved year-on-year. EBITA was EUR
39.6 (28.5) million, showing growth of 38.9%. EBITA margin was 11.8% (9.2%).
Profitability improved in Finland, Sweden, Denmark and Central Europe.
The profit increased in both product areas during the first half of the year.
EBITA was EUR 29.7 (19.2) million, or 10.6% (7.3%) of sales, for equipment
rental and EUR 15.0 (13.6) million, or 27.0% (30.7%) of sales, for modular
space. Modular space EBITA margin was affected by the significant proportion of
assembly and disassembly services during the period.
In the second quarter, EBITA was EUR 26.6 (18.4) million and the EBITA margin
was 14.9% (11.4%) of sales. Profitability improved in the second quarter in
Finland, Sweden, Denmark and Central Europe but declined in Norway and Eastern
Europe.
In the second quarter, EBITA was EUR 22.8 (13.6) million, or 15.0% (9.8%) of
sales, for equipment rental and EUR 7.1 (6.8) million, or 25.6% (30.9%) of
sales, for modular space.
In January–June, earnings per share were EUR 0.56 (0.32). Second-quarter
earnings per share were EUR 0.40 (0.23). Return on equity (rolling 12 months)
improved and was 12.9% (5.7%).
Cash flow from operating activities improved and was EUR 62.9 (48.4) million in
January–June. Cash flow after investments was EUR -9.5 (-12.4) million. Fleet
investments were increased and gross capital expenditure was EUR 99.8 (87.6)
million.
The Group’s gearing was 84.9% (91.2%) at the end of June. Net debt per EBITDA
stood at 2.03 (2.32) at the end of the period.
MARKET OUTLOOK
In Cramo countries, the construction market outlook for 2016 is positive. The
construction market analysts Euroconstruct and Forecon estimate that
construction will increase in all of Cramo’s operating countries with the
exception of Latvia and Russia.
In equipment rental, changes in demand usually follow those in construction
with a delay. In addition to construction volume, the demand for equipment
rental services is affected by industrial investments and the increase in the
rental penetration rate. Tightening legislation and the requirement to improve
the efficiency and quality of construction increase the need for different
types of rental-related services.
The demand for modular space is boosted by the increase in the need for and
popularity of modifiable and easily implementable space solutions. Demand is
also increased by migration flows within countries, demographical changes as
well as by completely new applications, such as asylum seeker reception
centres. Furthermore, we believe that the long-term demand for both equipment
rental and modular space is supported by megatrends, such as urbanisation and
the increasing emphasis on sustainability.
According to its June forecast, the European Rental Association (ERA) expects
the use of equipment rental services to increase in 2016 in all of Cramo’s
markets reported by ERA. According to Cramo’s estimate, the demand for modular
space has increased in the Nordic countries by nearly 6% per year during the
past five years. Cramo estimates that in Germany, market growth will be
somewhat stronger.
(All construction market forecasts presented in this review are estimates by
Euroconstruct, unless otherwise stated.)
BRIEFING
Cramo will hold a briefing and a live webcast at Hotel Kämp, address:
Kluuvikatu 2, 2nd floor, Helsinki, on Wednesday, 3 August 2016 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 3 August 2016 in the afternoon.
PUBLICATION OF FINANCIAL INFORMATION IN 2016
Cramo will publish one more Interim Report in 2016:
The interim report for January–September 2016 will be published on 26 October
2016.
CRAMO PLC
Leif Gustafsson
President and CEO
Further information:
Leif Gustafsson, President and CEO, tel: +46 70 677 2777
Martti Ala-Härkönen, CFO, tel: +358 10 661 1270 or +358 40 737 6633
Distribution:
Nasdaq 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 and in
about 330 depots. With a group staff around 2.500, Cramo's consolidated sales
in 2015 was EUR 668 million. Cramo shares are listed on the Nasdaq Helsinki
Ltd.
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