2012-08-08 08:00:01 CEST
2012-08-08 08:00:11 CEST
REGULATED INFORMATION
Cramo Oyj - Interim report (Q1 and Q3)
Cramo’s Interim Report 1 January–30 June 2012
Cash flow improving
Vantaa, Finland, 2012-08-08 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc Interim
Report 8 August 2012, at 09.00 am Finnish time (GMT+2)
Cramo's Interim Report 1 January-30 June 2012
Cash flow improving
1-6/2012 highlights (year-on-year comparison in brackets):
-- Sales EUR 321.4 (305.4) million, up 5.3%. Sales growth excluding divested
operations 6.9%
-- EBITA EUR 24.9 (16.8) million and EBITA margin 7.7% (5.5%)
-- Earnings per share EUR 0.16 (-0.07)
-- Retur
n
on equity (rolling 12 months) 6.8% (1.9%)
-- Cash flow from operating activities EUR 53.4 (32.4) million, cash flow
after investments EUR 18.2 (-98.3) million
-- Gearing 79.8% (91.8%)
-- Divestment of modular space production and customised space rental
businesses in Finland
4-6/2012 highlights
-- Sales EUR 161.4 (161.1) million; up 0.2%. Sales growth excluding divested
operations 3.2%
-- EBITA EUR 14.3 (14.3) million and EBITA margin 8.9% (8.9%)
-- Earnings per share EUR 0.11 (0.09)
New guidance: In 2012, the Group's sales will be approximately at the same
level as in 2011 and the EBITA margin will improve compared with 2011. Gearing
will decrease due to positive cash flow.
KEY FIGURES AND RATIOS 4-6/12 4-6/11 Change 1-6/12 1-6/11 Change 1-12/1
(MEUR) % % 1
--------------------------------------------------------------------------------
Income statement
--------------------------------------------------------------------------------
Sales 161.4 161.1 0.2 % 321.4 305.4 5.3 % 679.9
--------------------------------------------------------------------------------
EBITDA 39.6 38.2 3.7 % 75.7 63.5 19.2 % 168.7
--------------------------------------------------------------------------------
EBITA 1) 14.3 14.3 0.1 % 24.9 16.8 48.3 % 71.1
--------------------------------------------------------------------------------
% of sales 8.9% 8.9% 7.7% 5.5% 10.5%
--------------------------------------------------------------------------------
Operating profit / loss 11.4 11.7 -2.9 % 19.0 11.5 65.0% 54.3
(EBIT)
--------------------------------------------------------------------------------
Profit / loss before tax 6.1 5.8 5.0 % 8.5 1.9 350.3 32.2
(EBT) %
--------------------------------------------------------------------------------
Profit / loss for the 4.7 3.4 36.8 % 6.5 -2.5 23.5
period
--------------------------------------------------------------------------------
Share related
information
--------------------------------------------------------------------------------
Earnings per share 0.11 0.09 22.2 % 0.16 -0.07 0.60
(EPS), EUR 2)
--------------------------------------------------------------------------------
Earnings per share 0.11 0.08 37.5 % 0.15 -0.07 0.60
(EPS), diluted, EUR 2)
--------------------------------------------------------------------------------
Shareholders' equity 2) 10.67 10.17 4.9 % 10.83
--------------------------------------------------------------------------------
Other information
--------------------------------------------------------------------------------
Return on investment, % 6.9 % 4.6 % 6.6 %
3)
--------------------------------------------------------------------------------
Return on equity, % 3) 6.8 % 1.9 % 5.4 %
--------------------------------------------------------------------------------
Equity ratio, % 44.5 % 41.7 % 44.4 %
--------------------------------------------------------------------------------
Gearing, % 79.8 % 91.8 % 78.7 %
--------------------------------------------------------------------------------
Net interest-bearing 392.0 429.6 -8.8 % 389.4
liabilities
--------------------------------------------------------------------------------
Gross capital 40.8 94.2 -56.7 65.1 185.5 -64.9 262.5
expenditure (incl. % %
acquisitions)
--------------------------------------------------------------------------------
of which 0.0 41.6 114.3 115.4
acquisition/business
combinations
--------------------------------------------------------------------------------
Cash flow after 1.1 -53.1 18.2 -98.3 -55.3
investments
--------------------------------------------------------------------------------
Average number of 2,684 2,465 8.9 % 2,580
personnel (FTE)
--------------------------------------------------------------------------------
Number of personnel at 2,677 2,686 -0.3 % 2,707
period end (FTE)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
-
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-JUNE 2012
Cramo Group's consolidated sales for January-June were EUR 321.4 (305.4)
million, showing an increase of 5.3 per cent. In local currencies, sales growth
was 4.6 per cent. Sales for the second quarter were EUR 161.4 (161.1) million.
Sales figures were affected by the divestment of Cramo's modular space
production and customised space rental businesses in Finland at the end of
March. Sales growth excluding the divested businesses was 6.9 per cent in the
first half of the year and 3.2 per cent in the second quarter. Financial
uncertainty has weakened demand on certain markets.
EBITA for January-June was EUR 24.9 (16.8) million, or 7.7 (5.5) per cent of
sales. In the second quarter, EBITA was EUR 14.3 (14.3) million, or 8.9 (8.9)
per cent of sales.
EBITDA for January- June was EUR 75.7 (63.5) million, or 23.6 (20.8) per cent
of sales. Earnings per share were EUR 0.16 (-0.07).
A good result was achieved in Finland and Sweden, considering the market
situation, in addition to which profitability improved from last year in Norway
and Eastern Europe. In Eastern Europe, result turned positive in the second
quarter. Also in Denmark, result improved from the previous year but remained
negative. In Central Europe, result turned positive in the second quarter but
the result for January-June remained negative.
Cash flow from operating activities developed favourably and was EUR 53.4
(32.4) million for January-June. Gross capital expenditure was EUR 65.1 (185.5)
million and net cash flow from investing activities was EUR -35.2 (-130.7)
million. Cash flow after investments was EUR 18.2 (-98.3) million.
At the end of June, the Group's gearing was 79.8 (91.8) per cent.
After a period of strong growth, Cramo's focus in 2012 is on optimising its
profitability and cash flow. Profitability and cash flow will be improved, for
instance, by adjusting fixed costs and capital costs.
MODERATE GROWTH EXPECTED IN THE RENTAL SECTOR IN 2012, BUT MARKET-SPECIFIC
DIFFERENCES HAVE INCREASED
In Europe there is a high level of uncertainty in the economy. The uncertainty
increased during the second quarter and investment decisions are held back.
Nevertheless, in Norway, the Baltic countries and Russia, the demand for
equipment rental is still growing.
On a general level, the growth predictions for construction activities and
equipment rental have come in at a lower level during the spring. However, the
demand situation in Cramo's main market areas can still be described as
satisfactory.
Euroconstruct, the construction market analysts, in their June market forecast
predict about a three per cent decline for construction activity in Finland and
Sweden for 2012. For construction in Norway, Denmark and Germany, Euroconstruct
forecasts a growth ranging between two and four per cent. The growth prediction
for the Baltic countries is now over ten per cent and in Russia the growth
forecast stays at five per cent. The rental market is normally growing faster
than the underlying construction market.
Cramo believes that in spite of the economic uncertainty, rental services will
continue to be a growth industry. In periods of uncertainty, fleet renting is
an interesting alternative for construction companies when allocating
investment funds.
GUIDANCE ON GROUP OUTLOOK
The Group has modified its guidance. The new guidance is: “In 2012, the Group's
sales will be approximately at the same level as in 2011 and the EBITA margin
will improve compared with 2011. Gearing will decrease due to positive cash
flow.”
The old guidance was: “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.”
The modification has been triggered by increasing market uncertainty and the
sale of the modular space production and customised modular space rental
businesses in Finland.
CEO'S COMMENT
“The year 2012 started on a positive note, but during the spring Southern
European problems affected the economic climate throughout Europe. Cramo does
not operate in Southern Europe, but the general uncertainty has meant customers
holding back their investment decisions. Also Central and Northern Europe have
been affected. However, in some of our markets, in particular in Norway, the
Baltic countries and Russia, demand is growing.
For 2013, the construction market forecasts are more positive for Cramo's main
markets.
Norway and Eastern Europe posted a positive profit development in the second
quarter. Finland and Sweden performed close to expectations. After a sluggish
start of the year, Central European profit performance improved during the
second quarter.
We will continue our efforts to align our Central European business with that
of the rest of the Group. As a means of concentration, we terminated our
operations in Switzerland.
In a move to concentrate on core rental activities, we divested the modular
space production and customised modular space rental businesses in Finland at
the end of March. The divestment reduces the Group's sales numbers.
I am confident that our result for the whole year will improve year-on-year,
despite the fact that there are still uncertainties associated with the second
half of 2012,” says Vesa Koivula, President and CEO of Cramo Group.
SALES AND PROFIT
Cramo Group's consolidated sales for January-June were EUR 321.4 (305.4)
million, showing an increase of 5.3 per cent. In local currencies, sales growth
was 4.6 per cent.
Cramo Group's consolidated sales for the second quarter were EUR 161.4 (161.4)
million, showing an increase of 0.2 per cent. Sales figures were affected by
the divestment of Cramo's modular space production and customised space rental
businesses in Finland at the end of March. Sales growth excluding the divested
businesses was 6.9 per cent in the first half of the year and 3.2 per cent in
the second quarter. In addition, financial uncertainty weakened demand on
certain markets.
Cramo Group presents the net capital gain from the sale of used rental
equipment in other operating income. The net capital gain from the sale of used
rental equipment was EUR 1.3 (1.9) million during the period under review.
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 for January-June was EUR 24.9 (16.8) million, or 7.7 (5.5) per cent of
sales. EBITDA was EUR 75.7 (63.5) million, or 23.6 (20.8) per cent of sales. In
the second quarter, EBITA was EUR 14.3 (14.3) million, or 8.9 (8.9) per cent of
sales.
A good result was achieved in Finland and Sweden, considering the market
situation, in addition to which profitability improved from last year in Norway
and Eastern Europe. In Eastern Europe, result turned positive in the second
quarter. Also in Denmark, result improved from the previous year but remained
negative. In Central Europe, result turned positive in the second quarter but
the result for January-June remained negative.
EBIT for January-June was EUR 19.0 (11.5) million, or 5.9 (3.8) per cent of
sales. Profit before taxes was EUR 8.5 (1.9) million and profit for the period
EUR 6.5 (-2.5) million.
The Group's credit losses and credit loss provisions for January-June were EUR
2.4 (1.9) million. The result also includes impairment losses on the fleet
totalling EUR 0.6 (0.2) million.
Expenses associated with options totalled EUR 1.5 (1.4) million.
Net finance costs were EUR 10.5 (9.6) million.
Earnings per share were EUR 0.16 (-0.07) and diluted earnings per share were
EUR 0.15 (-0.07). In the second quarter, earnings per share were EUR 0.11
(0.09) and diluted earnings per share were EUR 0.11 (0.08).
Return on investment (rolling 12 months) was 6.9 (4.6) per cent and return on
equity (rolling 12 months) 6.8 (1.9) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION
Gross capital expenditure for January-June was EUR 65.1 (185.5) million, of
which EUR 0.0 (114.3) 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 50.8 (46.7)
million.
Amortisation on intangible assets resulting from acquisitions totalled EUR 5.9
(5.3) million.
At the end of the period, goodwill totalled EUR 167.1 (171.4) million.
FINANCIAL POSITION AND BALANCE SHEET
Cash flow from operating activities was EUR 53.4 (32.4) million for
January-June. Cash flow from investing activities was EUR -35.2 (-130.7)
million and cash flow from financing activities EUR -26.8 (93.2) million. Cash
flow after investments was EUR 18.2 (-98.3) million.
At the end of the period, the Group's balance sheet included EUR 6.5 (6.3)
million of assets available for sale.
On 30 June 2012, Cramo Group's net interest-bearing liabilities totalled EUR
392.0 (429.6) million. At the end of the period, gearing was 79.8 (91.8) per
cent.
Of the Group's variable rate loans, EUR 137.6 (181.6) million were hedged by
way of interest rate swaps on 30 June 2012. Hedge accounting is applied to EUR
91.0 (145.2) million of these interest rate hedges. On 30 June 2012, Cramo
Group had undrawn committed credit facilities (excluding leasing facilities) of
EUR 179.2 (124.7) million, of which non-current facilities represented EUR
150.0 (104.0) million and current facilities EUR 29.2 (20.7) million.
Property, plant and equipment amounted to EUR 624.8 (603.7) million of the
balance sheet total. The balance sheet total on 30 June 2012 was EUR 1,113.6
(1,133.3) million. The equity ratio was 44.5 (41.7) per cent.
Rental liabilities associated with off-balance sheet operational leasing
agreements totalled EUR 37.7 (53.3) million on 30 June 2012. Off-balance sheet
liabilities for office and depot rents totalled EUR 116.9 (111.7) million. The
off-balance sheet interest liability associated with the Group's hybrid bond
totalled EUR 1.0 (1.0) million at the end of the period. The Group's
investment commitments amounted to EUR 16.4 (40.4) million, the majority of
which 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 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 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 397 (398) depots. A total of 73 (75) of these were
entrepreneur-managed.
BUSINESS DEVELOPMENT AND STRATEGIC TARGETS
In the first quarter of the year, Cramo Group sold its modular space production
in Finland and Cramo Finland Oy's customised modular space rental businesses to
MB Funds. The transaction came into effect on 30 March 2012. The sales of the
production business in 2011 were approximately EUR 26 million and the sales of
the customised modular space rental business were approximately EUR 5 million.
According to its strategy, Cramo continues the standardised modular space
rental business and its expansion in the Nordic countries as well as Central
and Eastern Europe.
During the period, Cramo acquired the rental fleet and brand of Maskincity i
Oskarshamn AB operating in Sweden. Maskincity has one rental depot in
Oskarshamn in Southern Sweden where Cramo has not previously had a depot. The
transaction came into force on July 1, 2012. The sales forecasts for the
company for 2012 is approximately EUR 0.8 million.
In Central Europe, Cramo terminated its operations in Switzerland. Cramo had
had three depots in Switzerland.
The responsibility of Cramo's operations received acknowledgement when the
activities in Sweden were granted the OHSAS 18001 certificate for occupational
health and safety management systems and the activities in Finland received the
ISO 14001 environmental certification.
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 at a faster rate than the overall 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
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
expansion of the modular space business outside Finland and Sweden more
strongly than before. Cramo believes it has strengthened its competitiveness in
the past few years thanks to both development projects based on the Group
strategy and corporate reorganisation.
CHANGES IN MANAGEMENT
Mr. Bengt Nygren (52, M.Sc. Civ. Eng.) started as the Managing Director for the
Norwegian operations on 1 May 2012.
HUMAN RESOURCES
During the period under review, Group staff averaged 2,684 (2,465). In
addition, the Group employed some 169 (167) persons as work force hired from a
staffing service. At the end of the period, Group staff numbered 2,677 (2,686)
as full time equivalent (FTE).
The geographical distribution of personnel at the end of the period was as
follows: 533 (704) of personnel in Finland, 856 (797) in Sweden, 220 (218) in
Norway, 123 (123) in Denmark, 297 (279) in Central Europe and 647 (565) per
cent in Eastern Europe.
PERFORMANCE BY BUSINESS SEGMENT
Cramo Group's business segments consist of Finland, Sweden, Norway, Denmark,
Central Europe (which includes Germany, 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 17.0 (19.2) per cent of the total consolidated sales for
January-June 2012 (excluding inter-segment sales), Sweden 47.3 (45.3) per cent,
Norway 12.3 (12.1) per cent, Denmark 4.8 (4.5) per cent, Central Europe 9.3
(9.9) per cent and Eastern Europe 9.4 (9.0) 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) 4-6/12 4-6/11 Change % 1-6/12 1-6/11 Change 1-12/11
%
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Sales 25,606 31,271 -18.1 % 54,954 59,461 -7.6 % 127,565
--------------------------------------------------------------------------------
EBITA 3,685 4,248 -13.3 % 6,634 6,424 3.3 % 20,238
--------------------------------------------------------------------------------
EBITA-% 14.4 % 13.6 % 12.1 % 10.8 % 15.9 %
--------------------------------------------------------------------------------
No of employees 513 682 -24.8 % 623
(FTE)
--------------------------------------------------------------------------------
No of depots 55 55 0.0 % 55
--------------------------------------------------------------------------------
The Finnish operations reported sales of EUR 55.0 (59.5) million for
January-June. The sales for April-June were EUR 25.6 (31.3) million.
EBITA for January-June was EUR 6.6 (6.4) million, or 12.1 (10.8) per cent of
sales. EBITA for April-June was EUR 3.7 (4.2) million, or 14.4 (13.6) per cent
of sales.
In the second quarter, both sales and result decreased as a result of the
divestment of Cramo's modular space production and customised space rental
businesses in Finland in the end of March. The capital gain from the divestment
is presented in the Group's non-allocated capital gains. Relative profitability
improved year-on-year.
In construction, demand has diminished and the number of new building permits
granted has decreased. The average rental periods have also become shorter to a
certain extent as customers have optimised their operations. In industrial
investments, the strongest demand continued in the energy and mining sectors.
Demand for modular spaces continued at a steady level.
The most significant new customer agreement in the period was signed with Metso
Corporation in June. With the agreement, Metso aims at centralising its fleet
management and related installation services to Cramo. Cooperation will be
launched from Metso's factories in Finland and expand in the near future to
other countries in Europe.
In June, Det Norske Veritas granted Cramo Finland an environmental certificate
which complies with the ISO 14001 standard and covers the nationwide operations
of Cramo Finland Oy.
According to the forecast published by Euroconstruct in June, construction
activity will decline by some three per cent in Finland in 2012. In April, the
Confederation of Finnish Construction estimated that the decline would be two
per cent. Construction activity continued 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. In April, the European Rental Association ERA predicted a
growth of some two per cent for equipment rental in Finland.
The number of Cramo 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) 4-6/12 4-6/11 Change % 1-6/12 1-6/11 Change 1-12/11
%
--------------------------------------------------------------------------------
Sales 75,799 72,488 4.6 % 153,255 140,589 9.0 % 308,949
--------------------------------------------------------------------------------
EBITA 11,561 13,566 -14.8 % 24,442 22,911 6.7 % 58,047
--------------------------------------------------------------------------------
EBITA-% 15.3 % 18.7 % 15.9 % 16.3 % 18.8 %
--------------------------------------------------------------------------------
No of employees 816 757 7.8 % 791
(FTE)
--------------------------------------------------------------------------------
No of depots 126 124 1.6 % 128
--------------------------------------------------------------------------------
The decrease in new construction activity in the second quarter was also
visible in the demand for equipment rental services. Cramo's operations in
Sweden reported sales of EUR 153.3 (140.6) million for January-June. Sales
showed an increase of 9.0 per cent. In the local currency, growth was 8.3 per
cent. The sales for April-June increased by 4.6 per cent, totalling EUR 75.8
(72.5) million.
Profitability remained at a good level. EBITA for January-June was EUR 24.4
(22.9) million, or 15.9 (16.3) per cent of sales. EBITA for April-June was EUR
11.6 (13.6) million, or 15.3 (18.7) per cent of sales.
In spite of the weakening market outlook, Cramo has managed to increase its
cooperation with most of its major customers. Among the most significant new
agreements for the first half of the year were the equipment rental agreements
in power plant projects in Växjö and Malmö. Demand has remained at a good level
in the Stockholm area and in Northern Sweden.
During the period, Cramo acquired the rental fleet and brand of Maskincity i
Osakrshamn AB. Maskincity has one rental depot in Oskarshamn in Southern Sweden
where Cramo has not previously had a depot. The transaction came into force on
July 1, 2012. The sales forecast for the company for 2012 is approximately EUR
0.8 million.
In May, Cramo Sweden was granted the OHSAS 18001 certificate for occupational
health and safety management systems. Cramo Sweden has already been granted
quality and environment certificates which comply with the ISO standard.
In its analysis published in June, Euroconstruct lowered its growth prediction
for construction activities from an increase of two per cent to a three per
cent decline. 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. In April, ERA lowered its growth prediction
for the equipment rental business in Sweden from seven to four per cent.
Cramo is the clear market leader in the Swedish equipment rental business. At
the end of the period, Cramo had 126 (124) depots in Sweden. Cramo's strategic
targets in Sweden for 2010-2013 are improvement of efficiency and profitability
in particular, as well as achieving the “Best in town” position in all areas.
Norway
Norway (EUR 1,000) 4-6/12 4-6/11 Change % 1-6/12 1-6/11 Change 1-12/11
%
--------------------------------------------------------------------------------
Sales 19,121 17,378 10.0 % 39,919 37,582 6.2 % 79,265
--------------------------------------------------------------------------------
EBITA 697 -1,150 1,620 -735 857
--------------------------------------------------------------------------------
EBITA-% 3.6 % -6.6 % 4.1 % -2.0 % 1.1 %
--------------------------------------------------------------------------------
No of employees 220 218 0.9 % 221
(FTE)
--------------------------------------------------------------------------------
No of depots 31 34 -8.8 % 34
--------------------------------------------------------------------------------
Construction activity increased in Norway at the beginning of the year but the
growth was slightly slower than expected.
The sales for January-June increased 6.2 per cent in Norway and were EUR 39.9
(37.6) million. In local currency, the change was 2.8 per cent. The sales for
the second quarter were EUR 19.1 (17.4) million, showing an increase of 10.0
per cent.
Profitability improved significantly. EBITA for January-June was EUR 1.6 (-0.7)
million, or 4.1 (-2.0) per cent of sales. In the second quarter, EBITA was EUR
0.7 (-1.2) million, or 3.6 (-6.6) per cent of sales. Profitability improved,
thanks to the adjustment plan and the improved market situation. Profitability
is expected to develop favourably during the rest of the year as well.
During the period, the Group's new enterprise resource planning and reporting
system was launched in order to control the business operations of depots. In
addition, the period saw the start of the centralising of fleet repair and
maintenance operations.
Euroconstruct estimated in June that construction activity would grow by 4 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 some seven per cent for equipment rental.
At the end of the period under review, Cramo had 31 (34) depots in Norway.
Cramo's strategic targets are to improve its profitability, be the “Best in
town” and achieve growth both organically and through outsourcing and
acquisitions.
Denmark
Denmark (EUR 4-6/12 4-6/11 Change % 1-6/12 1-6/11 Change 1-12/11
1,000) %
--------------------------------------------------------------------------------
Sales 7,281 7,750 -6.0 % 15,470 14,007 10.4 % 34,965
--------------------------------------------------------------------------------
EBITA -547 -646 15.3 % -1,992 -2,281 12.7 % -2,132
--------------------------------------------------------------------------------
EBITA-% -7.5 % -8.3 % -12.9 % -16.3 % -6.1 %
--------------------------------------------------------------------------------
No of employees 123 123 0.0 % 124
(FTE)
--------------------------------------------------------------------------------
No of depots 18 18 0.0 % 20
--------------------------------------------------------------------------------
In Denmark, construction activity has developed favourably, mainly thanks to
renovation projects and public projects.
Cramo's Danish operations reported sales of EUR 15.5 (14.0) million for
January-June. Sales showed an increase of 10.4 per cent. In the first quarter,
sales increased as a result of significant modular space sales deliveries for
the Copenhagen metro project. The sales of the second quarter were EUR 7.3
(7.8) million. In the second quarter, Cramo signed an important long-term
modular space rental agreement in the metro project. The agreement includes the
accommodation facilities for 400 workers, among other things. A long-term
lifting equipment agreement was also signed in the second quarter for the
construction site of a wind power plant.
EBITA for January-June was EUR -2.0 (-2.3) million, or -12.9 (-16.3) per cent
of sales. This includes EUR 0.2 million of non-recurring expenses related to
the closing of depots and other adjustments. In the second quarter, EBITA was
EUR -0.5 (-0.6) million, or -7.5 (-8.3) per cent of sales.
In the beginning of the year, 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 for some product areas
are still low. Cramo seeks to improve profitability, particularly by
centralising operations and raising rental rates.
Euroconstruct estimates that the Danish construction market will grow by
approximately three per cent in 2012 and that growth will be divided relatively
evenly between residential construction, commercial and office construction and
civil engineering. Dansk Byggeri anticipates that growth will remain at the
previous year's level. In April, ERA lowered its estimation of the growth of
equipment rental business from six per cent to approximately one per cent.
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.
At the end of the period under review, Cramo had 18 (18) 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 4-6/12 4-6/11 Change 1-6/12 1-6/11 Change 1-12/1
1,000) % % 1
--------------------------------------------------------------------------------
Sales 18,238 19,945 -8.6 % 30,019 30,556 -1.8 % 71,213
--------------------------------------------------------------------------------
EBITA 929 1,640 -43.4 % -3,385 451 3,708
--------------------------------------------------------------------------------
EBITA-% 5.1 % 8.2 % -11.3 1.5 % 5.2 % %
--------------------------------------------------------------------------------
No of employees (FTE) 297 279 6.5 % 295
--------------------------------------------------------------------------------
No of depots 90 95 -5.3 % 96
--------------------------------------------------------------------------------
During the period under review, Cramo Group's equipment rental business sales
in Central Europe came from the German, Swiss and Austrian markets. There is
also one depot in Hungary. The Group terminated its operations in Switzerland
during the period.
The Central European operations reported sales of EUR 30.0 (30.6) million for
January-June. The sales during the second quarter were EUR 18.2 (19.9) million.
The general economic uncertainty in Europe has decreased the demand for civil
engineering services in Germany and Austria. Cramo's product and service
portfolio is currently focused on this area.
EBITA for January-June was EUR -3.4 (0.5) million, or -11.3 (1.5) per cent of
sales. As the business segment was established on 1 February 2011, comparison
period data could be obtained only for five months. The profit for the first
quarter was clearly negative due to the harsh winter which slowed down
construction activities in particular. In addition, the result of the start of
the year was affected by the fact that the focus of the rental fleet in Central
Europe is on construction machinery and, therefore, the segment is more
strongly affected by seasonal fluctuations than Cramo's other business
segments.
In the second quarter, EBITA was EUR 0.9 (1.6) million, or 5.1 (8.2) per cent
of sales. Result turned positive but failed to meet the expectations.
Cramo will modify its operations throughout Central Europe according to the
Cramo Concept and centralise its operations according to its “Best in town”
strategy. This will have an adverse effect on both sales and costs during the
transition period. The non-recurring costs of the transition program were about
EUR 0.5 million in the first half of the year.
According to the estimate published by Euroconstruct, construction activity in
Germany will increase by some two per cent in 2012. However, civil engineering
is expected to decrease by 2 per cent. In April, ERA raised its growth
prediction for equipment rental business in Germany by one per cent to
approximately six per cent.
At the end of the period, the number of Cramo depots in Central Europe was 90
(95). Cramo's strategic target in Central Europe is to expand its product and
service offering in stages, according to the Cramo Concept, as well as to
improve profitability.
Eastern Europe
Eastern Europe (EUR 4-6/12 4-6/11 Change 1-6/12 1-6/11 Change 1-12/1
1,000) % % 1
--------------------------------------------------------------------------------
Sales 16,704 14,999 11.4 % 30,574 27,868 9.7 % 66,575
--------------------------------------------------------------------------------
EBITA 672 -1,524 -129 -3,741 96.5 % 1,708
--------------------------------------------------------------------------------
EBITA-% 4.0 % -10.2 -0.4 % -13.4 2.6 %
% %
--------------------------------------------------------------------------------
No of employees (FTE) 647 565 14.5 % 589
--------------------------------------------------------------------------------
No of depots 77 72 6.9 % 76
--------------------------------------------------------------------------------
Cramo Group's equipment rental business sales in Eastern Europe come from
Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia.
Cramo's operations in Eastern Europe reported sales of EUR 30.6 (27.9) million
for January-June. Sales showed an increase of 9.7 per cent. In local
currencies, the change in sales was 11.1 per cent. The sales of the second
quarter were EUR 16.7 (15.0) million and showed an increase of 11.4 per cent.
EBITA for January-June was EUR -0.1 (-3.7) million, or -0.4 (-13.4) per cent of
sales. In the second quarter, EBITA was EUR 0.7 (-1.5) million, or 4.0 (-10.2)
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. Residential construction
activities have increased due to improved granting of loans, and the Nordic
constructors have a firm foothold on the construction of both residential and
office buildings. Cramo has opened a new depot for YIT's construction projects
in Rostov-on-don and signed new agreements during the period both with Finnish
and international construction companies. During the period, significant
modular space rental agreements were signed with Nokian Tyres in Saint
Petersburg, in the Volvo factory area in Kaluga and the Alstom power plant
construction site in Narva.
Business development was favourable in the Baltic countries too. In Estonia,
the growth of construction activity is driven by energy investments, an airport
and growing residential construction in particular.
The harsh winter conditions in Central Europe reduced construction activity and
demand for rental services in Poland, the Czech Republic and Slovakia during
the first quarter. Demand picked up in the second period but the overall market
situation is more demanding than in the previous year. As the overall economic
situation has become more restricted, growth is slowing down in Poland and has
turned negative in the Czech Republic and Slovakia.
Euroconstruct estimated that construction activity will grow by over ten per
cent in the Baltic area in 2012. In Russia, construction activity will grow by
five per cent and the estimation for Poland is approximately six per cent. ERA
predicts growth of some ten per cent for equipment rental in Poland in 2012.
Construction activities are estimated to decrease by some seven per cent in the
Czech Republic and by some three per cent in Slovakia.
Cramo's strategic target in Eastern Europe is to grow profitably at a faster
rate than the overall 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 (72).
SHARES AND SHARE CAPITAL
On 30 June 2012, Cramo Plc's share capital as registered in the Finnish Trade
Register was EUR 24,843,753.09 and the number of shares was 41,714,049. Cramo
Plc holds 316,288 of these shares through its subsidiary, Cramo Management Oy.
A total of 152,308 shares were subscribed with stock option rights 2006C, which
were registered in the Trade Register on 28 May 2012. 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. The subscription
prices have been marked under the invested unrestricted equity fund.
CURRENT OPTION PROGRAMMES AND INCENTIVE SCHEMES
On 30 June 2012, Cramo Group's had granted to the key personnel a total of
839,000 stock options 2009, 912,500 stock options 2010 and 947,000 stock
options 2011. Additionally on 30 June a total of 664,990 stock options 2006C
were outstanding whose subscription period ends on 31.1.2013.
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 for 1 new share.
Under the authorisation of the Annual General Meeting of Shareholders, the
Board of Directors decided on a new incentive scheme for all Cramo employees.
The incentive scheme is an employee share savings plan (ESSP), in which
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.
The ESSP is to be offered to all Cramo employees in countries where there are
no legal, tax or administrative constraints on participation. The savings
period begins on 1 October 2012 and terminates on 30 September 2013. The
maximum amount of savings per month is five per cent and the minimum amount per
month is two per cent of each participant's monthly gross salary. The total
amount of all savings during the savings period cannot exceed EUR 4 million.
The person participating in the plan acquires one additional share for free for
every two savings shares purchased. The employer participates in the plan for
one year at a time. Shares will be acquired with accrued savings with market
price once in a quarter after the release date of Cramo's Interim Reports.
In addition, the Board of Directors of Cramo Plc decided on a new share-based
incentive plan for the Group key employees. The new Performance Share Plan
consists 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 reward from the Plan for the
discretionary period 2012 will be based on Cramo Group's earnings per share
(EPS) key indicator and the potential reward will be paid in spring 2015 and
consists partly of company shares and partly of money. The total value of the
rewards based on the first discretionary period will not exceed the approximate
worth of 330,000 shares of Cramo Plc.
Regarding Group Management Team members, the target of the Plan is that the
person's share ownership in Cramo would be equal to at least his or her annual
gross salary.
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 seen 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.
The figures in this Interim Report are unaudited.
CONSOLIDATED BALANCE SHEET (EUR 1,000) 30 Jun 30 Jun 31 Dec 2011
2012 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Tangible assets 624,756 603,656 622,214
--------------------------------------------------------------------------------
Goodwill 167,104 171,386 165,318
--------------------------------------------------------------------------------
Other intangible assets 117,335 128,106 123,250
--------------------------------------------------------------------------------
Deferred tax assets 16,433 16,602 15,312
--------------------------------------------------------------------------------
Available-for-sale financial investments 348 362 350
--------------------------------------------------------------------------------
Shares in joint ventures 50 48
--------------------------------------------------------------------------------
Derivative financial instruments 0 2,650
--------------------------------------------------------------------------------
Trade and other receivables 1,110 3,733 3,553
--------------------------------------------------------------------------------
Total non-current assets 927,134 926,496 930,043
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Inventories 16,497 17,988 18,310
--------------------------------------------------------------------------------
Trade and other receivables 139,691 157,685 142,954
--------------------------------------------------------------------------------
Income tax receivables 8,130 7,424 5,563
--------------------------------------------------------------------------------
Derivative financial instruments 1,495 246 730
--------------------------------------------------------------------------------
Cash and cash equivalents 14,118 17,104 22,532
--------------------------------------------------------------------------------
Total current assets 179,931 200,447 190,089
--------------------------------------------------------------------------------
Assets available for sale 6,536 6,327 6,680
--------------------------------------------------------------------------------
TOTAL ASSETS 1,113,6 1,133,2 1,126,812
01 69
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Share capital 24,835 24,835 24,835
--------------------------------------------------------------------------------
Share issue 17
--------------------------------------------------------------------------------
Other reserves 302,456 300,722 300,723
--------------------------------------------------------------------------------
Fair value reserve 119 117 119
--------------------------------------------------------------------------------
Hedging fund -6,121 538 -5,168
--------------------------------------------------------------------------------
Translation differences 2,548 329 1,041
--------------------------------------------------------------------------------
Retained earnings 117,899 91,751 123,604
--------------------------------------------------------------------------------
Equity attributable to shareholders 441,736 418,293 445,171
of the parent company
--------------------------------------------------------------------------------
Non-controlling interest
--------------------------------------------------------------------------------
Hybrid capital 49,630 49,630 49,630
--------------------------------------------------------------------------------
Total equity 491,366 467,923 494,802
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
Interest-bearing liabilities 283,836 367,985 310,511
--------------------------------------------------------------------------------
Derivative financial instruments 8,108 467 6,775
--------------------------------------------------------------------------------
Deferred tax liabilities 80,798 88,548 85,399
--------------------------------------------------------------------------------
Pension obligations 1,263 1,541 1,448
--------------------------------------------------------------------------------
Other non-current liabilities 727 5,615 3,369
--------------------------------------------------------------------------------
Total non-current liabilities 374,733 464,156 407,502
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Interest-bearing liabilities 122,246 78,750 101,422
--------------------------------------------------------------------------------
Derivative financial instruments 1,949 842 1,838
--------------------------------------------------------------------------------
Trade and other payables 117,374 117,519 116,485
--------------------------------------------------------------------------------
Income tax liabilities 5,934 4,078 4,763
--------------------------------------------------------------------------------
Total current liabilities 247,503 201,190 224,508
--------------------------------------------------------------------------------
Total liabilities 622,236 665,346 632,010
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 1,113,6 1,133,2 1,126,812
01 69
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT 4-6/12 4-6/11 1-6/12 1-6/11 1-12/1
1 Jan 2012 - 30 Jun 2012 1
(EUR 1,000)
--------------------------------------------------------------------------------
Sales 161,42 161,135 321,410 305,352 679,89
0 2
--------------------------------------------------------------------------------
Other operating income 2,247 2,374 5,895 3,547 7,697
--------------------------------------------------------------------------------
Change in inventories of finished -47 -478 892 101 -425
goods and work in progress
--------------------------------------------------------------------------------
Production for own use 2,486 3,494 3,282 10,302
--------------------------------------------------------------------------------
Materials and services -53,72 -57,780 -113,59 -112,05 -248,3
3 6 6 93
--------------------------------------------------------------------------------
Employee benefit expense -35,69 -33,351 -72,523 -63,935 -135,7
2 51
--------------------------------------------------------------------------------
Other operating expenses -34,62 -36,198 -69,827 -72,759 -144,6
4 28
--------------------------------------------------------------------------------
Depreciation and impairment on -25,23 -23,853 -50,842 -46,743 -97,62
tangible assets and assets available 3 4
for sale
--------------------------------------------------------------------------------
EBITA 14,348 14,334 24,903 16,789 71,071
--------------------------------------------------------------------------------
% of sales 8.9 % 8.9 % 7.7 % 5.5 % 10.5 %
--------------------------------------------------------------------------------
Amortisation and impairment on -2,951 -2,600 -5,929 -5,292 -16,75
intangible assets resulting from 1
acquisitions
--------------------------------------------------------------------------------
Operating profit / loss (EBIT) 11,397 11,733 18,974 11,496 54,320
--------------------------------------------------------------------------------
% of sales 7.1 % 7.3 % 5.9 % 3.8 % 8.0 %
--------------------------------------------------------------------------------
Finance costs (net) -5,254 -5,885 -10,477 -9,609 -22,16
9
--------------------------------------------------------------------------------
Income from joint ventures 0 - 0 22
--------------------------------------------------------------------------------
Profit / loss before taxes 6,143 5,849 8,498 1,887 32,173
--------------------------------------------------------------------------------
% of sales 3.8 % 3.6 % 2.6 % 0.6 % 4.7 %
--------------------------------------------------------------------------------
Income taxes -1,463 -2,427 -2,023 -4,428 -8,668
--------------------------------------------------------------------------------
Profit / loss for the period 4,680 3,422 6,475 -2,541 23,505
--------------------------------------------------------------------------------
% of sales 2.9 % 2.1 % 2.0 % -0.8 % 3.5 %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
Equity holder of parent 4,680 3,422 6,475 -2,541 23,505
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-controlling interest
Profit / loss attributable to equity
holders' of parent
Earnings per share, undiluted, EUR 0.11 0.09 0.16 -0.07 0.60
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.11 0.08 0.15 -0.07 0.60
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT 4-6/12 4-6/11 1-6/12 1-6/11 1-12/1
1 Jan 2012 - 30 Jun 2012 (EUR 1,000) 1
--------------------------------------------------------------------------------
Profit / loss for the period 4,680 3,422 6,475 -2,541 23,505
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
-Change in hedging fund, net of tax -489 200 -953 1,735 -3,971
--------------------------------------------------------------------------------
-Change in exchange rate differences, 1,815 -5,813 6,223 -4,807 301
net of tax
--------------------------------------------------------------------------------
Total other comprehensive income 1,326 -5,613 5,270 -3,072 -3,670
--------------------------------------------------------------------------------
Comprehensive income for the period 6,006 -2,191 11,745 -5,613 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 -5,613 -5,613 -5,613
comprehensive
income
--------------------------------------------------------------------------------
Dividend -3,163 -3,163 -3,163
distribut
ion
--------------------------------------------------------------------------------
Exercise of share 7,262 7,262 7,262
options
--------------------------------------------------------------------------------
Share 97,398 97,398 97,398
issue
--------------------------------------------------------------------------------
Issue of shares 7,266 7,266 7,266
related to
business
combination
--------------------------------------------------------------------------------
Share-base 1,429 1,429 1,429
d payments
--------------------------------------------------------------------------------
Non-controlling 427 427 -503 -76
interest
--------------------------------------------------------------------------------
Hybrid -6,000 -6,000 -6,000
capital
--------------------------------------------------------------------------------
Changes
within
equity --------------------------------------------------------------------------------
At 30 Jun 24,835 300,72 117 92,618 418,293 49,630 467,92
2011 3 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
At 1 Jan 24,835 300,74 119 119,478 445,172 49,630 494,80
2012 0 2
--------------------------------------------------------------------------------
Total 11,745 11,745 11,745
comprehensive
income
--------------------------------------------------------------------------------
Dividend -12,374 -12,374 -12,37
distribut 4
ion
--------------------------------------------------------------------------------
Exercise of share 1,716 1,716 1,716
options
--------------------------------------------------------------------------------
Share-base 1,477 1,477 1,477
d payments
--------------------------------------------------------------------------------
Hybrid -6,000 -6,000 -6,000
capital
--------------------------------------------------------------------------------
At 30 Jun 24,835 302,45 119 114,326 441,737 49,630 491,36
2012 6 6
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT 1-6/12 1-6/11 1-12/1
1 Jan 2012 - 30 1
Jun 2012 (EUR 1,000)
--------------------------------------------------------------------------------
Net cash flow from operating activities 53,379 32,357 138,49
6
--------------------------------------------------------------------------------
Net cash flow from investing activities -35,21 -130,6 -193,8
2 82 04
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Change in interest-bearing receivables 2,516 111 244
--------------------------------------------------------------------------------
Change in finance lease liabilities -19,85 -17,47 -32,94
2 5 4
--------------------------------------------------------------------------------
Change in interest-bearing liabilities 7,226 15,094 -6,964
--------------------------------------------------------------------------------
Hybrid capital -6,000 -6,000 -6,000
--------------------------------------------------------------------------------
Proceeds from share options exercised 1,717 7,262 7,279
--------------------------------------------------------------------------------
Proceeds from share issue 97,397 97,397
--------------------------------------------------------------------------------
Non-controlling interest -76 -76
--------------------------------------------------------------------------------
Dividends paid -12,37 -3,163 -3,163
4
--------------------------------------------------------------------------------
Net cash flow from financing activities -26,76 93,150 55,773
7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents -8,600 -5,175 465
--------------------------------------------------------------------------------
Cash and cash equivalents at period start 22,532 22,313 22,313
--------------------------------------------------------------------------------
Translation differences 186 -34 -246
--------------------------------------------------------------------------------
Cash and cash equivalents at period end 14,118 17,104 22,532
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENT LIABILITIES 30 Jun 2012 30 Jun 2011 31 Dec 2011
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Pledges, finance lease 124,274 159,407 148,502
-----------------------------------------------------------------------------
Interest on hybrid capital 1,003 1,014 4,022
-----------------------------------------------------------------------------
Investment commitments 16,373 40,444 10,431
-----------------------------------------------------------------------------
Commitments to office and depot rents 116,850 111,703 130,880
-----------------------------------------------------------------------------
Operational lease payments 37,689 53,344 45,084
-----------------------------------------------------------------------------
Other commitments 236 1,102 643
-----------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS 30 Jun 2012 30 Jun 2011 31 Dec 2011
(EUR 1,000)
-----------------------------------------------------------------------
Fair value
-----------------------------------------------------------------------
Interest rate swaps -8,108 259 -6,775
-----------------------------------------------------------------------
Currency forwards -455 -598 -1,107
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Nominal value
-----------------------------------------------------------------------
Interest rate swaps 137,637 181,610 181,645
-----------------------------------------------------------------------
Currency forwards 225,662 147,918 202,932
-----------------------------------------------------------------------
MODULAR SPACE ORDER BOOK (EUR 1,000) 30 Jun 2012 30 Jun 2011 31 Dec 2011
--------------------------------------------------------------------------------
Value of outstanding orders for modular 98,318 103,215 102,660
space
--------------------------------------------------------------------------------
Value of orders for modular space rental 96,249 88,862 95,615
--------------------------------------------------------------------------------
Value of orders for sale of modular space 2,069 14,353 7,044
--------------------------------------------------------------------------------
SHARE RELATED KEY FIGURES 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
--------------------------------------------------------------------------------
Earnings per share (EPS), EUR 1) 0.11 0.09 0.16 -0.07 0.60
--------------------------------------------------------------------------------
Earnings per share (EPS), diluted, 0.11 0.08 0.15 -0.07 0.60
EUR 2)
--------------------------------------------------------------------------------
Shareholders' equity per share, 10.67 10.17 10.83
EUR 3)
--------------------------------------------------------------------------------
Number of shares, end of period 41,714,0 41,439,0 41,439,0
49 86 86
--------------------------------------------------------------------------------
Number of shares, issue-adjusted, 41,239,8 37,041,1 39,098,7
average 4) 62 57 51
--------------------------------------------------------------------------------
Number of shares, issue-adjusted, 41,397,7 41,122,7 41,122,7
end of period 4) 61 98 98
--------------------------------------------------------------------------------
Number of shares, diluted by share 41,835,6 38,129,9 39,380,5
options, average 09 53 27
--------------------------------------------------------------------------------
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 own shares held by Cramo Group
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) 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
--------------------------------------------
Finland 25,606 31,271 54,954 59,461 127,565
--------------------------------------------------------------------------------
Sweden 75,799 72,488 153,255 140,589 308,949
--------------------------------------------------------------------------------
Norway 19,121 17,378 39,919 37,582 79,265
--------------------------------------------------------------------------------
Denmark 7,281 7,750 15,470 14,007 34,965
--------------------------------------------------------------------------------
Central Europe 18,238 19,945 30,019 30,556 71,213
--------------------------------------------------------------------------------
Eastern Europe 16,704 14,999 30,574 27,868 66,575
--------------------------------------------------------------------------------
Inter-segment sales -1,329 -2,695 -2,782 -4,712 -8,640
--------------------------------------------------------------------------------
Group sales 161,420 161,135 321,410 305,352 679,892
--------------------------------------------------------------------------------
------------------------------------
EBITA (EUR 1,000) 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
--------------------------------------------
Finland 3,685 4,248 6,634 6,424 20,238
--------------------------------------------------------------------------------
% of sales 14.4 % 13.6 % 12.1 % 10.8 % 15.9 %
--------------------------------------------------------------------------------
Sweden 11,561 13,566 24,442 22,911 58,047
--------------------------------------------------------------------------------
% of sales 15.3 % 18.7 % 15.9 % 16.3 % 18.8 %
--------------------------------------------------------------------------------
Norway 697 -1,150 1,620 -735 857
--------------------------------------------------------------------------------
% of sales 3.6 % -6.6 % 4.1 % -2.0 % 1.1 %
--------------------------------------------------------------------------------
Denmark -547 -646 -1,992 -2,281 -2,132
--------------------------------------------------------------------------------
% of sales -7.5 % -8.3 % -12.9 % -16.3 % -6.1 %
--------------------------------------------------------------------------------
Central Europe 929 1,640 -3,385 451 3,708
--------------------------------------------------------------------------------
% of sales 5.1 % 8.2 % -11.3 % 1.5 % 5.2 %
--------------------------------------------------------------------------------
Eastern Europe 672 -1,524 -129 -3,741 1,708
--------------------------------------------------------------------------------
% of sales 4.0 % -10.2 % -0.4 % -13.4 % 2.6 %
--------------------------------------------------------------------------------
Non-allocated capital gains and 2,196
other income
--------------------------------------------------------------------------------
Non-allocated Group activities -2,719 -1,904 -4,801 -6,388 -11,756
--------------------------------------------------------------------------------
Eliminations 70 103 319 148 402
--------------------------------------------------------------------------------
Group EBITA 14,348 14,334 24,903 16,789 71,072
--------------------------------------------------------------------------------
% of sales 8.9 % 8.9 % 7.7 % 5.5 % 10.5 %
--------------------------------------------------------------------------------
------------------------------------
Depreciation (EUR 1,000) 4-6/12 4-6/11 1-6/12 1-6/11 1-12/11
--------------------------------------------
Finland -4,124 -4,205 -8,651 -8,402 -17,873
--------------------------------------------------------------------------------
Sweden -10,218 -8,875 -20,222 -17,805 -36,573
--------------------------------------------------------------------------------
Norway -2,618 -2,495 -5,378 -4,879 -10,808
--------------------------------------------------------------------------------
Denmark -1,310 -916 -2,434 -2,143 -3,988
--------------------------------------------------------------------------------
Central Europe -2,379 -2,379 -4,886 -3,781 -8,991
--------------------------------------------------------------------------------
Eastern Europe -4,654 -5,036 -9,401 -9,832 -19,512
--------------------------------------------------------------------------------
Non-allocated items and 69 53 129 100 121
eliminations
--------------------------------------------------------------------------------
Total -25,233 -23,853 -50,842 -46,743 -97,624
--------------------------------------------------------------------------------
-----------------------------------------
Reconciliation of Group EBITA to 4-6/12 4-6/11 1-6/12 1-6/11 1-12/1
earnings before taxes (EUR 1,000) 1
---------------------------------------
Group EBITA 14,348 14,334 24,903 16,789 71,072
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Amortisation and impairment on -2,951 -2,601 -5,929 -5,292 -16,75
intangible assets resulting from 1
acquisitions
Net finance items -5,254 -5,885 -10,47 -9,609 -22,16
7 9
--------------------------------------------------------------------------------
Share of profit from associate 22
--------------------------------------------------------------------------------
Earnings before taxes 6,143 5,849 8,498 1,887 32,173
--------------------------------------------------------------------------------
-----------------------------------------
Capital expenditure (EUR 1,000) 4-6/12 4-6/11 1-6/12 1-6/11 1-12/1
1
---------------------------------------
Finland 5,247 11,625 10,918 14,115 27,594
--------------------------------------------------------------------------------
Sweden 18,026 49,347 32,220 58,367 93,519
--------------------------------------------------------------------------------
Norway 2,989 15,152 4,221 16,417 26,174
--------------------------------------------------------------------------------
Denmark 1,085 386 1,562 932 5,460
--------------------------------------------------------------------------------
Central Europe 6,823 8,211 8,137 82,884 90,043
--------------------------------------------------------------------------------
Eastern Europe 6,407 9,057 7,590 11,992 17,989
--------------------------------------------------------------------------------
Non-allocated items and eliminations 221 418 430 761 1,727
--------------------------------------------------------------------------------
Total 40,797 94,197 65,078 185,46 262,50
9 6
--------------------------------------------------------------------------------
-------------------------------------
Assets (EUR 1,000) 30 Jun 2012 30 Jun 2011 31 Dec 2011
--------------------------------------
Finland 150,856 174,639 176,307
---------------------------------------------------------------------------
Sweden 521,151 497,642 507,339
---------------------------------------------------------------------------
Norway 112,127 114,060 112,042
---------------------------------------------------------------------------
Denmark 46,563 46,668 44,376
---------------------------------------------------------------------------
Central Europe 99,150 103,728 95,965
---------------------------------------------------------------------------
Eastern Europe 136,780 149,514 139,431
---------------------------------------------------------------------------
Non-allocated items and eliminations 46,974 47,018 51,352
---------------------------------------------------------------------------
Total 1,113,601 1,133,269 1,126,812
---------------------------------------------------------------------------
QUARTERLY SEGMENT INFORMATION
-------------------------
Sales by segment (EUR 4-6/12 1-3/12 10-12/ 7-9/11 4-6/11 1-3/11 10-12/
1,000) 11 10
-------------------------------------------------------
Finland 25,606 29,348 34,036 34,067 31,271 28,191 30,403
--------------------------------------------------------------------------------
Sweden 75,799 77,457 89,380 78,980 72,488 68,101 74,521
--------------------------------------------------------------------------------
Norway 19,121 20,798 20,996 20,687 17,378 20,204 19,667
--------------------------------------------------------------------------------
Denmark 7,281 8,189 11,253 9,705 7,750 6,257 8,630
--------------------------------------------------------------------------------
Central Europe 18,238 11,782 19,700 20,957 19,945 10,612 0
--------------------------------------------------------------------------------
Eastern Europe 16,704 13,870 19,453 19,254 14,999 12,869 15,812
--------------------------------------------------------------------------------
Inter-segment sales -1,329 -1,453 -1,916 -2,012 -2,695 -2,017 -2,649
--------------------------------------------------------------------------------
Group sales 161,42 159,99 192,90 181,63 161,13 144,21 146,38
0 1 3 7 5 7 4
--------------------------------------------------------------------------------
-------------------------
EBITA by segment (EUR 4-6/12 1-3/12 10-12/ 7-9/11 4-6/11 1-3/11 10-12/
1,000) 11 10
-------------------------------------------------------
Finland 3,685 2,949 6,147 7,667 4,248 2,176 3,265
--------------------------------------------------------------------------------
% of sales 14.4 % 10.0 % 18.1 % 22.5 % 13.6 % 7.7 % 10.7 %
--------------------------------------------------------------------------------
Sweden 11,561 12,881 17,964 17,173 13,566 9,344 14,600
--------------------------------------------------------------------------------
% of sales 15.3 % 16.6 % 20.1 % 21.7 % 18.7 % 13.7 % 19.6 %
--------------------------------------------------------------------------------
Norway 697 923 588 1,004 -1,150 415 399
--------------------------------------------------------------------------------
% of sales 3.6 % 4.4 % 2.8 % 4.9 % -6.6 % 2.1 % 2.0 %
--------------------------------------------------------------------------------
Denmark -547 -1,445 -147 295 -646 -1,634 -6
--------------------------------------------------------------------------------
% of sales -7.5 % -17.6 -1.3 % 3.0 % -8.3 % -26.1 -0.1 %
% %
--------------------------------------------------------------------------------
Central Europe 929 -4,314 326 2,932 1,640 -1,189
--------------------------------------------------------------------------------
% of sales 5.1 % -36.6 1.7 % 14.0 % 8.2 % -11.2
% %
--------------------------------------------------------------------------------
Eastern Europe 672 -801 2,880 2,569 -1,524 -2,218 -1,089
--------------------------------------------------------------------------------
% of sales 4.0 % -5.8 % 14.8 % 13.3 % -10.2 -17.2 -6.9 %
% %
--------------------------------------------------------------------------------
Non-allocated capital 0 2,196 0 0 0 0 0
gains and other income
--------------------------------------------------------------------------------
Non-allocated Group -2,719 -2,083 -4,086 -1,281 -1,904 -4,485 -3,072
activities
--------------------------------------------------------------------------------
Eliminations 70 249 132 122 103 45 -42
--------------------------------------------------------------------------------
Group EBITA 14,348 10,555 23,805 30,479 14,334 2,455 14,056
--------------------------------------------------------------------------------
% of sales 8.9 % 6.6 % 12.3 % 16.8 % 8.9 % 1.7 % 9.6 %
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS
TEN LARGEST SHAREHOLDERS 30 Jun 2012 SHARES %
-------------------------------------------------------------------------------
1 Hartwall Capital Oy Ab 6 491 702 15,56
-------------------------------------------------------------------------------
2 K. Hartwall Invest Oy 2 232 000 5,35
-------------------------------------------------------------------------------
3 Rakennusmestarien Säätiö (Construction engineers' fund) 2 129 422 5,10
-------------------------------------------------------------------------------
4 Mariatorp Oy 1 400 000 3,36
-------------------------------------------------------------------------------
5 Wipunen varainhallinta Oy 900 000 2,16
-------------------------------------------------------------------------------
6 Nordea Nordenfund 861 581 2,07
-------------------------------------------------------------------------------
7 Odin Finland 847 018 2,03
-------------------------------------------------------------------------------
8 Fondita Nordic Micro Cap 640 000 1,53
-------------------------------------------------------------------------------
9 Investment fund Aktia Capital 500 000 1,20
-------------------------------------------------------------------------------
10 Ilmarinen Mutual Pension Insurance Company 488 931 1,17
-------------------------------------------------------------------------------
Ten largest owners, total 16 490 654 39,53
-------------------------------------------------------------------------------
Nominee registered 7 636 270 18,31
-------------------------------------------------------------------------------
Others 17 587 125 42,16
-------------------------------------------------------------------------------
Total 41 714 049 100,00
-------------------------------------------------------------------------------
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 7 August 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 Wednesday, 8 August 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 8 August 2012 in the
afternoon.
PUBLICATION OF FINANCIAL INFORMATION
The January-September Interim Report will be published on Wednesday, 31 October
2012.
FURTHER INFORMATION
Vesa Koivula
President and CEO, tel. 010 661 10, 040 510 5710
Martti Ala-Härkönen
CFO, tel. 010 661 10, 040 737 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
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