Vantaa, Finland, 2014-09-09 13:04 CEST (GLOBE NEWSWIRE) -- Cramo Plc Stock Exchange Release 9 September 2014, at 1 pm Swedish time (CET), 2 pm Finnish time (EET)
Cramo updates its strategy, reconfirms its financial targets and provides additional financial information by product area
Cramo has decided to update the Group’s strategy, to reconfirm the Group’s financial targets and to provide additional financial information by product area.
Cramo will hold a Capital Markets Day for investors, analysts and media representatives in Stockholm, Sweden, today on Tuesday, 9 September 2014. The purpose of the day is to bring investors an in-depth briefing of Cramo Group's updated strategy and how the company will drive profitable growth in its different business areas. The Capital Markets Day presentations will be webcasted and the presentations will be available on the company’s website.
President and CEO Vesa Koivula says: “Cramo Group’s updated strategy is highly focused on value creation, and it will enable us to reach our financial targets. The core of the Group’s new strategy is “Cramo People living the Cramo Story”. Cramo Story is a wide programme through which Cramo will drive its sales in different countries, differentiate itself from competition, provide specific customer value and strengthen its corporate culture.”
Going forward, Cramo Group will drive its strategy through three focused Must-win battles, instead of the previous five battles. The Group’s updated Must-win battles are:
- Must-win battle #1: Deliver Cramo Story
- Must-win battle #2: Drive Cramo Performance Management
- Must-win battle #3: Win Central European Market
In addition to the three Must-win battles, Cramo will describe in the capital markets day the following three key strategic initiatives: modular space growth strategy, dynamic pricing and acquisitions and outsourcing.
In the capital markets day, Cramo will also describe how it will reach its financial targets through the implementation of the must-win battles. The Group’s reconfirmed financial targets are:
Profitability
- EBITA margin above 15 per cent of sales over a business cycle
Capital structure
- Gearing maximum 100 per cent
Sales growth
- Sales growth faster than the market
Return on equity
- Return on equity (ROE) above 12 per cent over a business cycle
Profit distribution
- Stable profit distribution, dividend approximately 40 per cent of annual earnings per share (EPS)
Additional financial information by product area
Cramo has decided to publish additional financial information by product area. The information shall be published yearly in the notes to the Group’s financial statements as additional information to business segment data. The two product areas reported will be equipment rental and modular space.
The financial information by product area for the financial year 2013 is provided below.
| 2013 | Equipment rental | Modular space* | Non-allocated and eliminations | Group | |
| Sales | 577 670 | 81 058 | -1 412 | 657 315 | |
| EBITDA | 143 987 | 38 248 | -8 419 | 173 816 | |
| - EBITDA-% | 24,9 % | 47,2 % | 26,4 % | ||
| Depreciation | -81 384 | -12 278 | -205 | -93 868 | |
| EBITA | 62 603 | 25 970 | -8 624 | 79 948 | |
| - EBITA-% | 10,8 % | 32,0 % | 12,2 % | ||
| Invested capital | 678 602 | 204 199 | -12 618 | 870 183 |
* As for 2013, the modular space product area covers only the modular space Nordic organisation. As for 2014, the financial information for modular space will also include the Baltic and German operations. In 2013, the sales of modular space in the Baltic countries, in addition to the sales of modular space presented below, was about EUR 0.7 million.
All Cramo Capital Markets Day materials will be available in English on the company's website at www.cramo.com - Investors approximately at 13.30 on 9 September 2014.
CRAMO PLC
Vesa Koivula
President and CEO
Further information:
Vesa Koivula, President and CEO, tel. +358 40 510 5710
Martti Ala-Härkönen, CFO, tel. +358 40 737 66 33
Distribution:
NASDAQ OMX Helsinki Ltd.
Major media
www.cramo.com
Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in fifteen countries with 360 depots. With a group staff around 2.500, Cramo's consolidated sales in 2013 was EUR 660 million. Cramo shares are listed on the NASDAQ OMX Helsinki Ltd.