2016-02-10 08:00:02 CET
2016-02-10 08:00:02 CET
REGULATED INFORMATION
Cramo Oyj - Financial Statement Release
Cramo’s Financial Statements Bulletin for January–December 2015
Profitable growth throughout the year, strong cash flow
Vantaa, Finland, 2016-02-10 08:00 CET (GLOBE NEWSWIRE) -- Cramo Plc Financial
Statements Bulletin 10 February 2016, at 9.00 am (EET)
Cramo’s Financial Statements Bulletin for January–December 2015
Profitable growth throughout the year, strong cash flow
10–12/2015 highlights (year-on-year comparison in brackets):
-- Sales EUR 187.2 (180.6) million; the change was 3.6%. In local currencies,
sales grew by 4.9%
-- Comparable EBITA before non-recurring items EUR 27.0 (25.9) million and
EBITA margin 14.4% (14.3%).
EBITA after non-recurring items EUR 26.1 (23.0) million and EBITA margin
14.0% (12.7%)
-- Comparable earnings per share before non-recurring items EUR 0.39 (0.37)
and earnings per share after non-recurring items EUR 0.37 (-0.17)
-- Cash flow from operating activities EUR 71.3 (47.8) million, cash flow
after investments EUR 37.0 (20.3) million. Cash flow improved by EUR 8.3
million tax refund
1–12/2015 highlights:
-- Sales EUR 667.9 (651.8) million; the change was 2.5%. In local currencies,
sales grew by 4.7%
-- Comparable EBITA before non-recurring items EUR 86.8 (73.2) million and
EBITA margin 13.0% (11.2%).
EBITA after non-recurring items EUR 84.8 (70.3) million and EBITA margin
12.7% (10.8%)
-- Comparable earnings per share before non-recurring items EUR 1.17 (0.91)
and earnings per share EUR 1.13 (0.37)
-- Cash flow from oper. activities EUR 182.9 (118.3) million, cash flow after
investments EUR 35.6 (-6.5) million.
-- Gearing 75.1% (84.7%)
-- The Board of Directors proposes a dividend of EUR 0.65 (0.55) per share
Events after the balance sheet date
-- The Group’s new President and CEO Leif Gustafsson took up his new position
on 1 January 2016
Guidance for 2016: In 2016, Cramo Group’s sales will grow in local currencies
and the EBITA margin will improve compared to 2015.
KEY FIGURES AND RATIOS (MEUR) 10-12/ 10-12/ Change 1-12/1 1-12/1 Change
15 14 % 5 4 %
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Income statement
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Sales 187.2 180.6 3.6 % 667.9 651.8 2.5 %
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EBITDA 51.9 47.8 8.5 % 185.7 167.3 11.0 %
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EBITA before non-recurring 27.0 25.9 4.3 % 86.8 73.2 18.7 %
items 1) 2)
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% of sales 14.4% 14.3% 13.0% 11.2%
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EBITA after non-recurring 26.1 23.0 13.7 % 84.8 70.3 20.7 %
items 1) 2)
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% of sales 14.0% 12.7% 12.7% 10.8%
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Operating profit (EBIT) 24.2 -5.1 76.7 34.3 123.5 %
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Profit before taxes (EBT) 21.3 -8.1 63.8 21.5 197.0 %
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Profit for the period 16.6 -7.5 49.7 16.0 210.6 %
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Share related information
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Earnings per share (EPS) 0.39 0.37 6.1 % 1.17 0.91 28.3 %
before non-recurring items,
EUR 3)
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Earnings per share (EPS), EUR 0.37 -0.17 1.13 0.37 206.3 %
--------------------------------------------------------------------------------
Earnings per share (EPS), 0.37 -0.17 1.12 0.36 208.2 %
diluted, EUR
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Shareholders’ equity per 11.05 10.40 6.3 %
share, EUR
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Other information
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Return on investment, % 4) 9.0 % 4.2 %
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Return on equity, % 4) 10.5 % 3.4 %
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Equity ratio, % 45.7 % 43.9 %
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Gearing, % 75.1 % 84.7 %
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Net interest-bearing 368.4 385.4 -4.4 %
liabilities
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Gross capital expenditure 40.7 33.6 21.2 % 175.0 159.1 10.0 %
(incl. acquisitions)
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of which acquisitions/business 1.3 0.4 249.0 % 9.8 11.4 -14.0 %
combinations
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Cash flow from operating 71.3 47.8 49.0 % 182.9 118.3 54.6 %
activities
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Cash flow after investments 37.0 20.3 82.5 % 35.6 -6.5
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Average number of personnel 2,486 2,528 -1.6 %
(FTE)
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Number of personnel at period 2,473 2,473 0.0 %
end (FTE)
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1. EBITA is operating profit before amortisation and impairment resulting from
acquisitions.
2. The EBITA for the fourth quarter of 2015 included EUR 0.8 million in
non-recurring costs in Central Europe. The EBITA for the third quarter of
2015 included EUR 1.2 million in non-recurring costs relating to the change
of the President and CEO. In the fourth quarter of 2014, non-recurring
costs included in EBITA amounted to EUR 2.9 million, of which EUR 2.2
million related to Denmark and EUR 0.7 million to non-recurring costs at
the Group level.
3. The profit for the fourth quarter of 2015 included EUR 0.8 million in
non-recurring costs in Central Europe. The profit for the third quarter of
2015 included EUR 1.2 million in non-recurring costs relating to the change
of the President and CEO. In the fourth quarter of 2014, the non-recurring
costs included in the profit for the period amounted to EUR 23.6 million,
of which EUR 2.2 million related to Denmark, EUR 0.7 million to
non-recurring costs at the Group level, EUR 25.5 million to an impairment
on goodwill and intangible assets in Central Europe and EUR 4.8 million to
a tax income.
4. Rolling 12 months. In 2015, comparable return on investment before the
effect of non-recurring items was 9.2% (7.5%) and comparable return on
equity before the effect of non-recurring items was 10.9% (8.3%).
CEO LEIF GUSTAFSSON'S COMMENT
Profitable growth continued
“In the fourth quarter of 2015, Cramo Group’s sales grew in local currencies by
4.9% and EBITA margin before non-recurring items improved to 14.4% (14.3%).
Full-year sales increased in local currencies by 4.7% and reached EUR 667.9
million. Full-year EBITA margin before non-recurring items improved from 11.2%
to 13.0%. Profitability improved in all markets and product areas except in
Eastern Europe where profitability was at last year’s level. The best
profitability was achieved in Finland and Sweden. In Central Europe, full-year
EBITA still remained negative but improved towards the end of the year and we
completed restructuring in the fourth quarter.
A specific highlight of both the fourth quarter and full year of 2015 was the
improving cash flow. Despite higher investments, our balance sheet
strengthened. This provides room for growth investments going forward.
During the year, we increased the efficiency of our operations. In line with
our strategy, we continue performance improvement actions to further enhance
our productivity.
For the full year, equipment rental sales grew in local currencies by 3.7% and
modular space sales by 9.8%. In the fourth quarter, modular space sales grew in
local currencies by 15.7%. It is specifically positive that our modular space
business has got off to a good start in Germany. In the fourth quarter we
signed significant customer agreements and announced a minor business
acquisition in December within modular space. Going forward, I believe Cramo
has great growth possibilities in the modular space area.
My first weeks as Cramo’s President and CEO have been inspiring. It is an
honour to get the opportunity to continue steering and developing the Cramo
Group towards becoming the role model in rental services.
I would like to thank my predecessor Vesa Koivula warmly for his efforts in
developing Cramo and in making it a leading European rental company.
My task is now to listen carefully to our customers, shareholders and
colleagues and to ensure that we, as a team, continue to develop the company
and the value it generates to our stakeholders.
Based on current outlook, I expect rental markets to gradually strengthen in
2016. This creates a good foundation for further profitable growth,” says Leif
Gustafsson, Cramo Group’s President and CEO.
SUMMARY OF FINANCIAL PERFORMANCE IN 2015
Sales
Cramo Group’s consolidated sales for 2015 were EUR 667.9 (651.8) million,
showing a year-on-year increase of 2.5%. In local currencies, sales grew by
4.7%.
Sales grew by 6.4% in Finland, by 5.9% in Sweden and by 1.8% in Eastern Europe.
In local currencies, sales grew by 8.9% in Sweden and by 2.2% in Eastern
Europe. Sales decreased in Norway, Denmark and Central Europe where operations
have been restructured.
As for product areas, sales growth was 1.4% (3.7% in local currencies) for
equipment rental and 7.8% (9.8% in local currencies) for modular space.
Fourth-quarter sales were EUR 187.2 (180.6) million, showing an increase of
3.6%. In local currencies, sales grew by 4.9%. In the fourth quarter, sales
grew in Finland, Sweden and Denmark. Fourth-quarter sales growth was 1.6% (3.0%
in local currencies) for equipment rental and 14.6% (15.7% in local currencies)
for modular space.
Costs
Performance improvement actions had a positive effect on the Group’s result in
2015. Indirect costs (employee benefit expenses and other operating expenses)
before non-recurring items decreased by EUR 4.5 million. During 2015,
performance improvement actions focused particularly on direct costs (materials
and services), whose share of sales decreased from 35.7% to 35.4%. In the
fourth quarter, a periodically higher amount of rental-related service sales
particularly in modular space increased direct costs.
Result
Profitability improved year-on-year. In 2015, comparable EBITA before
non-recurring items was EUR 86.8 (73.2) million, showing growth of 18.7%.
Comparable EBITA margin was 13.0% (11.2%). Non-recurring items amounted to EUR
2.0 million, of which EUR 1.2 million relate to the change of the President and
CEO in the third quarter and EUR 0.8 million to restructuring in Central Europe
in the fourth quarter. Full-year profitability improved in all markets and
product areas except in Eastern Europe, where it remained at last year’s level.
The best profitability was achieved in Finland and Sweden.
Fourth-quarter comparable EBITA before non-recurring items was EUR 27.0 (25.9)
million. Comparable EBITA margin was 14.4% (14.3%) of sales. In the fourth
quarter, the result improved in Finland, Sweden, Denmark and Central Europe.
As for product areas, full-year EBITA was EUR 64.9 (50.8) million, or 11.4%
(9.1%) of sales for equipment rental and EUR 29.5 (26.9) million, or 29.5%
(29.0%) of sales for modular space. During the fourth quarter, equipment rental
EBITA was EUR 19.9 (16.5) million, or 12.7% (10.7%) of sales, and modular space
EBITA was EUR 7.9 (7.6) million, or 25.8% (28.4%) of sales.
Full-year comparable earnings per share before non-recurring items were EUR
1.17 (0.91) and earnings per share after non-recurring items EUR 1.13 (0.37).
Fourth-quarter comparable earnings per share before non-recurring items were
EUR 0.39 (0.37) and after non-recurring items EUR 0.37 (-0.17).
Full-year cash flow from operating activities improved clearly year-on-year and
was EUR 182.9 (118.3) million. Cash flow after investments EUR 35.6 (-6.5)
million. Gross capital expenditure was EUR 175.0 (159.1) million.
Fourth-quarter cash flow from operating activities continued to develop
favourably and was EUR 71.3 (47.8) million. Cash flow from operating activities
was improved by the EUR 8.3 million tax refund with regard to the 2009–2012
taxation of the interest income from Cramo’s financing company in Belgium. Cash
flow after investments was EUR 37.0 (20.3) million.
The Group’s gearing decreased to 75.1% (84.7%) at the end of 2015.
Proposal for profit distribution
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.65 (0.55) be paid for the financial year 2015.
MARKET OUTLOOK
Economic development is expected to gradually pick up in Europe. According to
European Central Bank’s (ECB) December estimate, short-term indicators suggest
that GDP growth will continue to be moderate. ECB expects favourable financing
conditions and low mortgage interest rates, combined with the increase in
households’ disposable income, to boost demand for housing in the near future.
The need for new construction, renovation and temporary facilities also
increases due to intensely increasing immigration.
In Cramo countries, the construction market outlook for 2016 is positive. In
their reports published in December, the construction market analysts
Euroconstruct and Forecon estimated that in 2016, construction would increase
in all of Cramo’s operating countries with the exception of Russia and
Slovakia. The Confederation of Finnish Construction Industries RT also
estimated that construction will take an upward turn in Finland in 2016.
In the long term, the equipment rental market is expected to grow faster than
construction. Changes in demand usually follow those in construction with a
delay. In addition to construction 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.
According to its November forecast, the European Rental Association (ERA)
expects the usage of equipment rental services to increase in all of Cramo’s
main markets in 2016. According to Cramo’s estimates, demand for modular space
has increased in the Nordic countries by approximately 6% per year during the
past few years. Cramo estimates that in the Baltic countries and Germany,
market growth is 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 Kämp Kansallissali, address:
Aleksanterinkatu 44 A, 2nd floor, Helsinki, on Wednesday, 10 February 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 10 February 2016 in the afternoon.
PUBLICATION OF FINANCIAL INFORMATION 2016
The Annual Report containing the full financial statements for 2015 will be
published in electronic format in week 10/2016. Cramo Plc’s 2016 Annual General
Meeting will take place on Thursday, 31 March 2016, in Helsinki.
In 2016, Cramo will publish three interim reports:
The interim report for January–March 2016 will be published on 4 May 2016.
The interim report for January–June 2016 will be published on 3 August 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 with 330
depots. With a group staff around 2.500, Cramo's consolidated sales in 2014 was
EUR 652 million. Cramo shares are listed on the Nasdaq Helsinki Ltd.
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