Vantaa, Finland, 2011-11-01 08:00 CET (GLOBE NEWSWIRE) -- Cramo Plc Interim Report 1 November 2011, at 9.00 am Finnish time (GMT+2)
CRAMO’S INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2011 - SALES AND PROFITS UP
Q3/2011 highlights:
- Sales EUR 181.6 (130.4) million, up 39.3%
- EBITA EUR 30.5 (15.2) million and EBITA margin 16.8% (11.6%)
- Earnings per share EUR 0.38 (0.05)
- Cash flow after investments turned positive and was EUR 10.5 million
1–9/2011 highlights:
- Sales: EUR 487.0 (345.7) million, up 40.9% of which organic growth 24.2%
- EBITA EUR 47.3 (20.4) million and EBITA margin 9.7% (5.9%)
- Earnings per share EUR 0.34 (-0.31)
- Cash flow after investments EUR -87.9 (26.7) million
- Gearing 88.4% (107.5%)
Guidance has been changed:
- In spite of the increased market uncertainty, the Group’s sales in 2011 is expected to grow significantly both organically and as a consequence of acquisitions. The Group's EBITA will approximately double compared to that of 2010. Based on a continued positive cash flow, the Group’s gearing will continue to decrease in 2012.
| KEY FIGURES AND RATIOS (MEUR) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Income statement | |||||||
| Sales | 181.6 | 130.4 | 39.3 % | 487.0 | 345.7 | 40.9 % | 492.1 |
| EBITDA | 55.6 | 36.5 | 52.4 % | 119.1 | 83.9 | 42.0 % | 117.6 |
| EBITA 1) | 30.5 | 15.2 | 101.1 % | 47.3 | 20.4 | 131.5 % | 34.5 |
| % of sales | 16.8% | 11.6% | 9.7% | 5.9% | 7.0% | ||
| Operating profit / loss (EBIT) | 27.5 | 13.3 | 106.6 % | 39.0 | 15.3 | 155.3 % | 27.4 |
| Profit / loss before tax (EBT) | 20.0 | 7.2 | 178.5 % | 21.9 | -3.6 | 4.8 | |
| Profit / loss for the period | 15.5 | 1.8 | 767.5 % | 13.0 | -10.6 | -2.2 | |
| Share related information | |||||||
| Earnings per share (EPS), EUR 2) | 0.38 | 0.05 | 660.0 % | 0.34 | -0.31 | -0.06 | |
| Earnings per share (EPS), diluted, EUR 2) | 0.38 | 0.05 | 660.0 % | 0.34 | -0.31 | -0.06 | |
| Shareholders’ equity per share, EUR | 10.33 | 10.03 | 3.0 % | 10.52 | |||
| Other information | |||||||
| Return on investment, % 3) | 6.2 % | -0.7 % | 3.7 % | ||||
| Return on equity, % 3) | 5.1 % | -10.6 % | -0.6 % | ||||
| Equity ratio, % | 42.4 % | 38.5 % | 38.7 % | ||||
| Gearing, % | 88.4 % | 107.5 % | 103.4 % | ||||
| Net interest-bearing liabilities | 419.6 | 381.1 | 10.1 % | 382.0 | |||
| Gross capital expenditure (incl. acquisitions) | 37.8 | 13.0 | 189.8 % | 226.2 | 33.2 | 581.2 % | 86.2 |
| of which acquisition/business combinations | -0.3 | 4.1 | 116.9 | 8.2 | 32.7 | ||
| Cash flow after investments | 10.5 | 8.6 | -87.9 | 26.7 | 27.4 | ||
| Average number of personnel (FTE) | 2,544 | 2,070 | 22.9 % | 2,083 | |||
| Number of personnel at period end (FTE) | 2,705 | 2,131 | 26.9 % | 2,131 | |||
| 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–SEPTEMBER 2011
Cramo Group's consolidated sales continued to grow. Sales grew by 40.9 per cent in January–September to EUR 487.0 (345.7) million. In local currencies, sales growth was 36.3 per cent, while organic growth was 24.2 per cent. Growth was achieved in all markets.
Sales grew by 39.3 per cent in July–September to EUR 181.6 (130.4) million. In local currencies, sales increased by 37.4 per cent in the third quarter.
Profitability continued to improve in the third quarter. EBITA for January–September improved compared to the previous year to EUR 47.3 (20.4) million, representing 9.7 (5.9) per cent of sales. EBITDA was EUR 119.1 (83.9) million, or 24.5 (24.3) per cent of sales. Earnings per share for January–September were EUR 0.34 (-0.31).
EBITA for July–September was EUR 30.5 (15.2) million, or 16.8 (11.6) per cent of sales. Business development was favourable in all markets, and the third-quarter EBITA margin exceeded the Group's annual target level of 15 per cent. Third-quarter earnings per share were EUR 0.38 (0.05).
EBITA excluding non-recurring items for January–September was EUR 49.4 (14.7) million, or 10.1 (4.3) per cent of sales. EBITDA excluding non-recurring items was EUR 121.2 (78.2) million, or 24.9 (22.6) per cent of sales. In the first quarter of 2011, non-recurring items included expenses of EUR 2.1 million relating to the acquisition of Theisen Group, while non-recurring items in the first quarter of 2010 included a net capital gain of EUR 5.7 million.
All business segments achieved a positive EBITA in the third quarter. In Finland and Sweden the result was good, and profitability continued to improve in Central Europe. In Norway, Denmark and Eastern Europe, the business swung into profit. Sales and profit development was particularly strong in Eastern Europe.
The Group’s cash flow after investments was EUR -87.9 (26.7) million. Gross capital expenditure was EUR 226.2 (33.2) million, of which acquisitions accounted for EUR 116.9 (9.3) million. Because of the market uncertainty, Cramo cut its investments from the planned level in the third quarter, and third-quarter cash flow after investments moved into positive numbers, amounting to EUR 10.5 (8.6) million. The investment level will be modest with a view to maintaining utilisation rates at a good level in all market circumstances. At the end of the period, the Group’s investment commitments amounted to EUR 21.6 (7.1) million, approximately 60 per cent of which is related to the acquisition of modular space.
Gearing continued to decrease, amounting to 88.4% (107.5%) at the end of the period.
After a strong period of growth, Cramo is now focusing on optimising its profitability and ensuring a positive cash flow in all of its business operations. The investment levels have been cut for the rest of the year and for 2012. Operational efficiency will also be boosted by means of cost cutting.
MARKET REVIEW: STRONG GROWTH FROM LOW LEVELS IN 2011, LESS GROWTH EXPECTED FOR 2012
Economic uncertainty has increased in Europe, which may have an impact on construction growth going forward. Also for Cramo’s business operations the risk level is now higher.
The uncertainty of the financial market has not yet had any significant effects on Cramo's business. On the contrary, the recovery in construction strengthened in some market areas during the summer, including Norway, Latvia and Russia. According to most recent local market forecasts published in October, construction activity in Finland and Sweden will remain at approximately the level of 2011 in 2012.
Cramo believes that in spite of the general economic uncertainty, rental services continue to be a growth industry. Arrangements whereby companies outsource their equipment fleet to a rental service company are attractive to many companies, especially in periods of uncertainty.
GUIDANCE ON GROUP OUTLOOK
The Group has modified its guidance. The new guidance is: “In spite of the increased market uncertainty, the Group’s sales in 2011 is expected to grow significantly both organically and as a consequence of acquisitions. The Group's EBITA will approximately double compared to that of 2010. Based on a continued positive cash flow, the Group’s gearing will continue to decrease in 2012.”
The old guidance was: “In spite of the increased market uncertainty, the Group’s sales in 2011 are expected to grow both organically and as a consequence of acquisitions. The Group’s EBITA margin will improve compared with 2010.”
CEO’S COMMENT
“The third quarter of 2011 was positive for the Cramo Group. The demand for rental services and the price level continued to develop favourably, and we achieved a positive result in all of our business areas. I am particularly delighted to report strong sales growth and profit improvement in Eastern Europe, as well as the continued positive development of our Central European segment, which was formed in connection with the acquisition of Theisen Group.
In the past few years, Cramo has been able to achieve stronger organic growth compared to its competitors, in almost all of its market areas. In addition, markets which are new to the Group, such as Germany, will balance country-specific risks.
The integration of Tidermans and Stavdal, acquired in June, has progressed as planned. Both acquisitions reinforce Cramo’s regional market position.
The third quarter was shadowed by the economic uncertainty in Europe. Because of increased risk levels, we decided to cut our fleet investments and increase the efficiency of fleet optimisation, particularly between our market areas. We will also increase our efficiency by cutting costs, and we have updated contingency plans that are in place in all of our markets.
The expansion of the modular space product area over the past few years as well as several outsourcing agreements have improved the stability of Cramo’s business. At the same time, Cramo has improved the flexibility of its business by increasing the number of entrepreneur-managed depots and the use of temporary staff. The flexibilities related to fleet financing have also been increased, and processes related to fleet optimisation have been enhanced.
So far, no material changes have been seen in our major market areas – Finland, Sweden, Norway and Germany. In many Eastern European countries, recovery has only just got underway after the previous downturn. The current general market situation continues to be favourable for Cramo. The uncertainties concern the development in 2012.
I am confident that our solid market position, stronger balance sheet and flexible operating model provides us with a solid foundation for successful trading, even in a less favourable business environment,” says Vesa Koivula, President and CEO of Cramo Group.
SALES AND PROFIT
Cramo is a service company specialising in equipment rental services, as well as the rental and sale of modular space. Its equipment rental services comprise construction machinery and equipment rentals and rental-related services. These rental-related services include construction site and installation services. As one of the industry’s leading service providers in the Nordic countries and Central and Eastern Europe, at the end of the financial period, Cramo Plc operated in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Russia, Germany, Austria, Switzerland and Hungary.
Cramo Group’s consolidated sales were EUR 487.0 (345.7) million in the period 1 January–30 September 2011, showing an increase of 40.9 per cent. In local currencies, sales growth was 36.3 per cent. Organic growth was 24.2 per cent. Sales increased in all business segments. Growth was particularly strong in Eastern Europe and Finland.
Sales grew by 39.3 per cent in July–September to EUR 181.6 (130.4) million. In local currencies, sales growth was 37.4 per cent.
Profitability continued to improve in the third quarter as expected. EBITA for January–September improved from the previous year, amounting to EUR 47.3 (20.4) million and representing 9.7 (5.9) per cent of sales. EBITDA was EUR 119.1 (83.9) million, or 24.5 (24.3) per cent of sales.
EBITA for July–September was EUR 30.5 (15.2) million, or 16.8 (11.6) per cent of sales. The third-quarter EBITA margin exceeded the Group’s annual target level of 15 per cent.
EBITA excluding non-recurring items for January–September was EUR 49.4 (14.7) million, or 10.1 (4.3) per cent of sales. In the first quarter of 2011, non-recurring items included expenses of EUR 2.1 million relating to the acquisition of Theisen Group, while non-recurring items in the first quarter of 2010 included a net capital gain of EUR 5.7 million.
All business segments achieved a positive EBITA in the third quarter. In Finland and Sweden the result was good, and profitability continued to improve in Central Europe. In Norway, Denmark and Eastern Europe, the business swung into profit.
The Group’s net finance costs in January–September were EUR -17.1 (-18.8) million and in July–September EUR -7.5 (-6.1) million. The third quarter’s net finance costs include EUR 1.2 million of negative change in the market value of interest rate swaps to which hedge accounting is not applied.
The Group’s credit losses and credit loss provisions in January–September were EUR 3.9 (3.8) million. The result also includes impairment losses on the fleet totalling EUR 0.6 (1.7) million.
Expenses associated with options totalled EUR 2.2 (1.7) million. The third-quarter result includes non-recurring reorganisation expenses of EUR 0.5 (0.0) million.
EBIT was EUR 39.0 (15.3) million, or 8.0 (4.4) per cent of sales. Profit before taxes was EUR 21.9 (-3.6) million and profit for the period EUR 13.0 (-10.6) million.
In accordance with the prudence principle, Cramo did not recognise a deferred tax asset for all of its loss-making companies.
Earnings per share were EUR 0.34 (-0.31). Diluted earnings per share were EUR 0.34 (-0.31). Diluted earnings per share for the third quarter were EUR 0.38 (0.05).
Return on investment (rolling 12 months) was 6.2 (-0.7) per cent and return on equity (rolling 12 months) 5.1 (-10.6) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION
Gross capital expenditure for the period was EUR 226.2 (33.2) million, of which EUR 116.9 (8.2) million relates to acquisitions and business combinations. Company and business acquisitions consist of the acquisition of Theisen Group as well as of Tidermans and Stavdal.
The investment level was decreased in the third quarter from the planned level. In the third quarter, gross capital expenditure was EUR 37.8 (13.0) million.
Reported depreciation and impairment on property, plant and equipment and software were EUR 71.8 (63.5) million.
Depreciation and amortisation on intangible assets resulting from acquisitions were EUR 8.3 (5.1) million. At the end of the period, goodwill totalled EUR 170.0 (146.7) million.
FINANCIAL POSITION AND BALANCE SHEET
January–September cash flow from operating activities was EUR 77.6 (29.5) million, Cash flow from investing activities was EUR -165.5 (-2.8) million and cash flow from financing activities was EUR 82.9 (-31.1) million. The Group’s cash flow after investments was EUR -87.9 (26.7) million.
In the third quarter, the cash flow from operating activities was EUR 45.3 (18.3) million. Cash flow after investments turned positive in the third quarter, amounting to EUR 10.5 (8.6) million.
At the end of the period, the Group's balance sheet included EUR 6.2 (2.8) million of assets available for sale.
After consolidating the Theisen Group the Group has recognised a pension liability from Germany (EUR 1.6 million on 30 September 2011), which is presented in provisions in the balance sheet.
On 30 September 2011, Cramo Group’s net interest-bearing liabilities totalled EUR 419.6 (381.1) million. In the third quarter, net interest-bearing liabilities decreased from the second quarter thanks the positive cash flow. At the end of the period, gearing was 88.4 (107.5) per cent.
Of the variable-rate loans, EUR 179.5 (190.2) million were hedged by way of interest rate swaps on 30 September 2011. Hedge accounting is applied to EUR 143.2 (103.9) million of these interest rate hedges. On 30 September 2011, Cramo Group had undrawn committed credit facilities (excluding leasing facilities) of EUR 125.9 (125.5) million, of which non-current facilities represented EUR 102.0 (100.0) million and current facilities EUR 23.9 (25.5) million.
Property, plant and equipment amounted to EUR 606.8 (506.0) million of the balance sheet total. Growth is due to organic investments and business combinations. The balance sheet total on 30 September 2011 was EUR 1,129.3 (930.5) million and the equity ratio was 42.4 (38.5) per cent.
Rental liabilities associated with off-balance sheet operational leasing agreements totalled EUR 51.9 (39.3) million on 30 September 2011. Off-balance sheet liabilities for office and depot rents totalled EUR 113.8 (83.4) million. At the end of the period, the Group’s investment commitments amounted to EUR 21.6 (7.1) million, over 60 per cent of which is related to the acquisition of modular space. At the end of the period, the hybrid bond-related off-balance sheet interest liability was EUR 2.5 (1.0) million.
GROUP STRUCTURE
At the end of the period under review, Cramo Group consisted of the parent company Cramo Plc, which provides group-level services, and as operating companies, its wholly-owned subsidiaries in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Russia, Germany, Austria, Switzerland and Hungary. Cramo Plc also owns a financing company in Belgium, a company in Sweden which offers group-level services and Cramo Management Oy, which owns 316,288 Cramo Plc shares.
At the end of the period under review, equipment rental services were provided through a network of 401 (288) depots. Growth was almost entirely due to acquisitions. 71 (77) of the depots were entrepreneur-managed.
BUSINESS DEVELOPMENT AND STRATEGIC TARGETS
In January, Cramo acquired 100 per cent of the share capital of the German rental group Theisen Baumaschinen AG, and Theisen Group was consolidated into Cramo Group on 1 February 2011.
Some 90 per cent of Theisen Group’s sales are generated in Germany. The Group also has operations in Austria, Switzerland and Hungary. Cramo expects the acquisition to be earnings-neutral for Cramo Group in 2011 and earnings-accretive thereafter.
In June, Cramo reinforced its regional market position with the acquisition of Tidermans, a Swedish rental operator in the Gothenburg region, and Stavdal, a Norwegian rental company operating in the Oslo region. Both companies were consolidated into Cramo Group from 30 June 2011 onwards.
The integration of all companies acquired in the current year into Cramo Group has progressed as planned.
Cramo’s strategic targets for 2010–2013 are to be the customers’ first choice as well as the “best in town” in the rental business. Other strategic targets are to grow profitably faster than the market and to act as a driver of rental development.
Cramo Group’s financial targets for 2010–2013 are as follows: sales growth above 10 per cent per annum, EBITA margin above 15 per cent of sales, return on equity (ROE) above 15 per cent and maximum gearing at 100 per cent.
HUMAN RESOURCES
During the period under review, Group staff averaged 2,544 (2.070). In addition, the Group employed some 178 (100) persons as temporary staff. At the end of the period, Group staff numbered 2,705 (2,131).
The geographical distribution of personnel at the end of the period was as follows: Finland, 656 (570) employees; Sweden, 832 (735); Norway, 220 (189); Denmark, 125 (118); Central Europe, 287; and Eastern Europe, 584 (518).
PERFORMANCE BY BUSINESS SEGMENT
Cramo Group’s business segments consist of Finland, Sweden, Norway, Denmark, Central Europe, which includes Germany, Switzerland, Austria and Hungary, and Eastern Europe, which includes Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia. In addition to segment information, Cramo also reports on the order book value for modular space.
Finland generated 19.2 (20.0) per cent of the total consolidated sales for January–September 2011, Sweden 45.1 (51.3) per cent, Norway 12.0 (14.3) per cent, Denmark 4.9 (6.0) per cent, Central Europe 10.6 per cent and Eastern Europe 9.7 (9.9) 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) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Sales | 34,067 | 27,430 | 24.2 % | 93,528 | 69,181 | 35.2 % | 99,583 |
| EBITA | 7,667 | 6,105 | 25.6 % | 14,091 | 9,201 | 53.1 % | 12,466 |
| EBITA-% | 22.5 % | 22.3 % | 15.1 % | 13.3 % | 12.5 % | ||
| No of employees (FTE) | 633 | 550 | 15.1 % | 570 | |||
| No of depots | 55 | 58 | -5.2 % | 58 |
The growth in construction which started in the second half in 2010 continued in Finland.
Finnish operations reported sales of EUR 93.5 (69.2) million for January–September, for an increase of 35.2 per cent. EBITA totalled EUR 14.1 (9.2) million, or 15.1 (13.3) per cent of sales.
Sales for July–September were EUR 34.1 (27.4) million, up 24.2 per cent. EBITA for July–September was EUR 7.7 (6.1) million, or 22.5 (22.3) per cent of sales.
Sales increased as a result of the strong recovery in the markets, particularly in the residential construction segment, and the significant outsourcing agreements signed at the end of 2010. In industrial construction, demand is the highest in the energy and mining sectors. Fleet utilisation rates were at a good level. Demand for modular space remains steady.
According to both the Euroconstruct forecast published in June and the forecast published by the Confederation of Finnish Construction Industries RT, construction activity in Finland will grow by four per cent in 2011. Both residential construction and commercial and office construction will increase markedly, while civil engineering will decrease. The Confederation of Finnish Construction Industries RT expects that construction investments will remain at the current year’s level in 2012. The Confederation anticipates that construction activity will continue at a moderately good level in the first half of 2012, thanks to projects already underway. A clear downswing in construction activity may be seen in the second half of the year, however.
Cramo is the second largest player in the equipment rental market in Finland. The number of depots at the end of the period under review was 55 (58). 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) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Sales | 78,980 | 64,839 | 21.8 % | 219,569 | 177,337 | 23.8 % | 251,857 |
| EBITA | 17,173 | 12,332 | 39.2 % | 40,083 | 26,586 | 50.8 % | 41,186 |
| EBITA-% | 21.7 % | 19.0 % | 18.3 % | 15.0 % | 16.4 % | ||
| No of employees (FTE) | 795 | 698 | 13.9 % | 665 | |||
| No of depots | 125 | 119 | 5.0 % | 119 |
The demand for construction and equipment rental services in Sweden continued to develop favourably. Growth continued to be particularly strong in the Stockholm region and in southern Sweden. Demand is expected to remain strong throughout the country.
The Swedish operations reported sales of EUR 219.6 (177.3) million for January–September, for an increase of 23.8 per cent. In the local currency, sales growth was 15.6 per cent. Sales increased as a result of strong construction growth and industrial investments.
Sales for July–September were EUR 79.0 (64.8) million, up 21.8 per cent. In the local currency, the third-quarter growth in sales was 18.3 per cent.
Profitability continued to develop favourably. EBITA for January–September amounted to EUR 40.1 (26.6) million, representing 18.3 (15.0) per cent of sales. Profitability continued to improve in the third quarter. EBITA for July–September amounted to EUR 17.2 (12.3) million, representing 21.7 (19.0) per cent of sales. Fleet utilisation rates were at a good level.
In June, Cramo acquired Tidermans, the leading rental operator in western Sweden. The company's net sales were around EUR 14.2 million in 2010. The company was consolidated into Cramo Group on 30 June 2011, and its integration has progressed as planned. A significant new project launched during the period was the mine project in Pajala in northern Sweden.
The general uncertainty of the European economy has not yet been experienced in the Swedish construction market. The Swedish government has announced it will invest in both building construction and civil engineering projects in 2012 to support the country’s economic growth.
The full-year forecast, published by Euroconstruct in June, for construction growth in Sweden is five per cent. The Swedish Construction Federation (Sveriges Byggindustrier) estimated in October that construction will increase by nine per cent in 2011 with the strongest growth occurring in residential construction. Commercial and office construction are also expected to grow strongly. For 2012 the Swedish Construction Federation only predicts a growth rate of one per cent and a decline in residential construction.
Cramo is the clear market leader in the Swedish equipment rental business. At the end of the period, Cramo had 125 (119) depots in Sweden. Cramo's strategic targets in Sweden for 2010–2013 are efficiency and profitability improvement in particular, as well as achieving the “best in town” position in all areas.
Norway
| Norway (EUR 1,000) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Sales | 20,687 | 17,023 | 21.5 % | 58,269 | 49,453 | 17.8 % | 69,120 |
| EBITA | 1,004 | 310 | 224.1 % | 269 | -96 | 379.6 % | 303 |
| EBITA-% | 4.9 % | 1.8 % | 0.5 % | -0.2 % | 0.4 % | ||
| No of employees (FTE) | 220 | 189 | 16.4 % | 189 | |||
| No of depots | 34 | 29 | 17.2 % | 29 |
In the first half of the year, the rate of recovery in the construction sector in Norway was below the industry’s expectations. However, an upswing in construction activity appears to have occurred during the summer.
Norwegian operations reported sales of EUR 58.3 (49.5) million for January–September, an increase of 17.8 per cent. In the local currency, the change in sales was 15.1 per cent. Sales in the third quarter amounted to EUR 20.7 (17.0) million, showing an increase of 21.5 per cent. In the local currency, the third-quarter growth in sales was 18.6 per cent.
EBITA for January–September amounted to EUR 0.3 (-0.1) million, representing 0.5 (-0.2) per cent of sales. After the weak second quarter, profitability turned positive. EBITA in the third quarter totalled EUR 1.0 (0.3) million, or 4.9 (1.8) per cent of sales. The third-quarter result includes non-recurring reorganisation expenses of EUR 0.3 (0.0) million. Measures aimed at improving profitability continued, which included the reorganisation of operations and increasing the efficiency of processes. The favourable profitability development is expected to continue in the fourth quarter.
In June, Cramo acquired the rental operator Stavdal Utleiesenter AS. Stavdal became part of Cramo Group on 30 June 2011, and its integration has progressed as planned. Stavdal’s sales were around EUR 7.3 million in 2010.
According to the estimate published by Euroconstruct in June, construction will increase in Norway by almost six per cent in 2011. The strongest rates of growth are predicted for residential construction. Civil engineering activity is also expected to increase markedly. The Norwegian analysis company Prognoessenteret predicts also clear growth for commercial and office construction in the current year.
Cramo estimates that in terms of market position, it is the second largest service provider in the sector in Norway. At the end of the period under review, Cramo had 34 (29) depots in Norway. Cramo’s strategic targets in Norway are to improve its profitability, be the “best in town” and achieve growth both organically and through acquisitions.
Denmark
| Denmark (EUR 1,000) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Sales | 9,705 | 8,395 | 15.6 % | 23,712 | 20,863 | 13.7 % | 29,493 |
| EBITA | 295 | -831 | 135.5 % | -1,985 | -5,322 | 62.7 % | -5,328 |
| EBITA-% | 3.0 % | -9.9 % | -8.4 % | -25.5 % | -18.1 % | ||
| No of employees (FTE) | 125 | 118 | 5.9 % | 120 | |||
| No of depots | 19 | 17 | 11.8 % | 17 |
In Denmark, expectations concerning the development of construction activity in 2011 are cautiously positive. After a difficult first half of the year, the situation is expected to improve in the second half. New projects have been launched in the infrastructure sector in particular.
Danish operations reported sales of EUR 23.7 (20.9) million for January–September, for an increase of 13.7 per cent. Sales in the third quarter amounted to EUR 9.7 (8.4) million, showing an increase of 15.6 per cent.
EBITA for January–September amounted to EUR -2.0 (-5.3) million, representing -8.4 (-25.5) per cent of sales. Profit improvement continued in the third quarter. In the July–September period, EBITA turned positive and was EUR 0.3 (-0.8) million.
Cramo’s key target for Denmark in the current year is to convert the result into profit. The favourable profit development was particularly attributable to improved fleet utilisation rates and process efficiency. The positive profitability development is also expected to continue in the last quarter of the year. A new project launched in the third quarter concerns the expansion of the Copenhagen Metro.
In June, Euroconstruct estimated that the Danish construction market will show an upturn with a growth rate of almost three per cent in 2011. According to the local market forecast (Dansk Byggeri) published in September, overall construction will grow by 1.5 per cent in 2011, compared with the previous year.
Cramo estimates that in terms of market position, it is the second largest service provider in the sector in Denmark. At the end of the period under review, Cramo had 19 (17) depots in Denmark.
Cramo's key targets in Denmark are to increase profitability and to achieve the “best in town” position in selected areas. The Group will seek growth in the modular space business in particular.
Central Europe
| Central Europe (EUR 1,000) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Sales | 20,957 | 51,513 | |||||
| EBITA | 2,932 | 3,383 | |||||
| EBITA-% | 14.0 % | 6.6 % | |||||
| No of employees (FTE) | 287 | ||||||
| No of depots | 95 |
Cramo Group’s equipment rental business sales in Central Europe come from the German, Swiss, Austrian, and Hungarian markets. The business segment was formed when Theisen Group, which was acquired in January 2011, was consolidated into Cramo Group on 1 February 2011.
In Central Europe, the market situation in equipment rental has developed favorably against the previous year. The German economy in particular has developed favourably, which is also reflected in the demand for equipment rental services. Demand has also developed positively in the Austrian market. Since the focus of the rental fleet in Central Europe is on construction machinery, the segment is more strongly affected by seasonal fluctuations than Cramo’s other business segments.
Central European operations reported sales of EUR 51.5 million for February–September, of which EUR 21.0 million were generated in the third quarter.
EBITA for February–September was EUR 3.4 million, or 6.6 per cent of sales. Profitability continued to improve as expected. EBITA for the third quarter was EUR 2.9 million, representing 14.0 per cent of sales. The third-quarter result includes non-recurring reorganisation expenses of EUR 0.2 million.
Fleet expansion continued through internal transfers as well as investments. Furthermore, the German and Austrian markets offer Cramo new opportunities for flexible fleet optimisation between market areas.
According the estimate published by Euroconstruct in June, construction will increase in Germany by 1.7 per cent in 2011. In Switzerland and Austria, the markets are expected to remain unchanged or grow slightly. In Hungary, construction is expected to decrease by three per cent.
At the end of the period, the number of depots in Central Europe was 95. Cramo’s strategic target in Central Europe is to expand its product and service offering in stages according to the Cramo concept and to improve profitability.
Eastern Europe
| Eastern Europe (EUR 1,000) | 7-9/11 | 7-9/10 | Change % | 1-9/11 | 1-9/10 | Change % | 1-12/10 |
| Sales | 19,254 | 14,361 | 34.1 % | 47,122 | 34,073 | 38.3 % | 49,886 |
| EBITA | 2,569 | -1,488 | 272.6 % | -1,173 | -10,374 | 88.7 % | -11,464 |
| EBITA-% | 13.3 % | -10.4 % | -2.5 % | -30.4 % | -23.0 % | ||
| No of employees (FTE) | 584 | 518 | 12.7 % | 532 | |||
| No of depots | 73 | 65 | 12.3 % | 65 |
Cramo Group’s equipment rental business sales in Eastern Europe come from Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia. Until 31 December 2010, the name of the segment was Central and Eastern Europe.
The growth in construction which started in the second half of 2010 continued in most Eastern European markets.
Cramo’s Eastern European operations reported sales of EUR 47.1 (34.1) million for January–September, for an increase of 38.3 per cent. In local currencies, the change in sales was 38.6 per cent. Sales for July–September were EUR 19.3 (14.4) million, up 34.1 per cent. In local currencies, sales growth was 35.9 per cent in the third quarter.
EBITA for January–September amounted to EUR -1.2 (-10.4) million, representing -2.5 (-30.4) per cent of sales. Profitability improved strongly in all markets in the third quarter. Third-quarter EBITA turned positive and was EUR 2.6 (-1.5) million, or 13.3 (-10.4) per cent of sales. The improvements in profitability were due to higher fleet utilisation rates, the recovery of the markets and price levels, and previously-concluded adjustments.
In Russia, Cramo’s business has developed favourably in all geographical areas (St. Petersburg, Moscow, Kaluga and Yekaterinburg). Cramo has reinforced its market position as a partner for western constructors and industrial investors in particular, and signed master agreements, which are still rare in Russia. In addition to equipment rental, the demand for modular space has increased strongly, and the tools rental services launched in Russia have been well received. In the Baltic countries, the Estonian construction market has shown particular growth, boosted by the introduction of the euro. In addition to residential construction, construction projects have also been launched by the infrastructure and energy industry in Estonia. Construction activity in Lithuania and Latvia has also seen a clear year on year increase. In Poland, strong growth continued in almost all areas of construction, but the rate of growth is expected to slowing down.
According to the forecast published by Euroconstruct in June, construction activity is expected to increase by up to 18 per cent in Estonia, by seven per cent in Lithuania and by five per cent in Russia. In Latvia, the market will remain at the same level as in the previous year. In Poland, civil engineering is expected to drive construction growth, which is predicted at almost 13 per cent. In the Czech Republic and in Slovakia, the markets are expected to decline by 1–2 per cent.
Cramo’s strategic target in Eastern Europe is to grow profitably and faster than the market and to be the best rental services provider at the local level in each market. Cramo also intends to decrease its dependence on the construction industry.
At the end of the period, the number of depots in Eastern Europe was 73 (65).
SHARES AND SHARE CAPITAL
On 30 September 2011, Cramo Plc’s share capital as registered in the Finnish Trade Register was EUR 24,834,753.09 and the number of shares was 41,439,086. Cramo Plc holds 316,288 of these shares through its subsidiary Cramo Management Oy.
On 23 September 2011, Cramo announced it would apply for listing of stock options 2006C on NASDAQ OMX Helsinki to commence on 3 October 2011. A total of 1,000,000 of stock option rights 2006C have been issued, of which 878,500 are held by 86 key employees. A wholly-owned subsidiary of Cramo Plc currently holds 121,500 stock option rights. The share subscription period is 1 October 2011 to 31 January 2013. Each stock option 2006C entitles its holder to subscribe for 1.3 shares in Cramo Plc. The subscription price is EUR 6.47, after taking into account the dividends for 2006–2010. Other possible dividends to be decided before the share subscription shall be deducted from the share subscription price.
As a result of the rights offering carried out in the second quarter, the number of Cramo Plc’s shares increased by 9,489,877 new shares. The subscription price was EUR 10.50 per share, and the subscription right was three new shares for every ten shares held. The share subscription period was 1 April –15 April 2011, and all shares offered were subscribed for. The shares were registered in the trade register on 26 April 2011. Cramo’s net proceeds from the rights offering amounted to approximately EUR 97.4 million.
As a result of subscriptions made under the stock option rights 2006A, the number of shares increased by 694,000 new shares in the first quarter. The share subscription period for these stock options ended on 31 January 2011. In the first quarter, the number of shares also increased by 374,532 new shares issued to Arrex Beteiligungs-GmbH, a shareholder of Theisen Baumaschinen AG, in a directed issue, and by a further 220,488 new shares due to a share swap in which Cramo acquired all of the shares in Cramo Management Oy from the Cramo Executive Committee.
CURRENT OPTION PROGRAMMES AND INCENTIVE SCHEMES
On 30 September 2011, Cramo Group's key personnel held a total of 737,000 stock options 2006B, 878,500 stock options 2006C, 887,000 stock options 2009 and 964,500 stock options 2010.
Stock options 2006B, 2006C, 2009 and 2010 did not entitle their holders to participate in the rights offering decided on by the Board of Directors on 24 March 2011. Therefore, the subscription price and subscription ratio of the stock options was amended in accordance with the terms and conditions of stock options so that the share-specific subscription price is as follows: for stock options 2006B, EUR 22.05; stock options 2006C, EUR 6.47; stock options 2009, EUR 10.85; and stock options 2010, EUR 13.72. The subscription ratio will be amended so that each stock option entitles the holder to subscribe for 1.3 new Cramo Plc shares.
The Annual General Meeting held on 24 March 2011 decided that a maximum of 1,000,000 stock options be issued to the key personnel. The stock options will be issued gratuitously, and they will entitle their owners to subscribe for a maximum of 1,000,000 new shares in the company or existing shares held by the company in total. The share subscription price will be based on the prevailing market price of the Cramo Plc share on NASDAQ OMX Helsinki Ltd. in October 2011. The subscription period for the shares will be 1 October 2014 – 31 December 2015.
CHANGES IN SHAREHOLDINGS
There were no changes in shareholdings in excess of the flagging threshold during the period under review.
VALID BOARD AUTHORISATIONS
The Annual General Meeting held on 24 March 2011 authorised the Board of Directors to decide on the repurchase and/or on the acceptance as pledge of the company's own shares. The company’s own shares can only be acquired at a price formed in public trading on the date of the repurchase or otherwise at a price formed on the market. They can be acquired otherwise than in proportion to the shareholdings of the shareholders (directed repurchase). The authorisation is effective until the close of the next Annual General Meeting of Shareholders, or no later than 24 September 2012.
The Annual General Meeting authorised the Board of Directors to decide on a share issue which includes the right to decide on the transfer of the company’s own shares, as well as on the granting of option rights and other special rights entitling to shares as referred to in Chapter 10 of the Finnish Limited Liability Companies Act. The shares issued will be new shares in the company or shares held by the company. Under the authorisation, a maximum of 12,000,000 shares may be issued. The share issue and granting of special rights may be carried out in deviation from the shareholders’ pre-emptive right, provided that there is a significant financial reason for the company to do so. The authorisation is effective five years from the date of the decision of the Annual General Meeting.
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, the availability of competent management and recruitment-related risks, tax risks and other business risks.
As a result of the economic downturn of 2009, 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 eurozone countries has increased the uncertainty of near-term future economic development in Europe, which has increased the risk levels associated also with Cramo’s business operations.
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 2010, except for the revised IFRS standard IAS 24 (Related Party Disclosures), which the company adopted on 1 January 2011, as well as other changes in other standards attributable to this change.
The above-mentioned changes in standards have not had a significant impact on the reported balance sheet, income statement and notes to the Interim Report.
| CONSOLIDATED BALANCE SHEET (EUR 1,000) | 30 Sep 2011 | 30 Sep 2010 | 31 Dec 2010 | ||||||
| ASSETS | |||||||||
| Non-current assets | |||||||||
| Tangible assets | 606,751 | 505,976 | 526,326 | ||||||
| Goodwill | 170,006 | 146,740 | 147,998 | ||||||
| Other intangible assets | 124,191 | 91,881 | 102,001 | ||||||
| Deferred tax assets | 18,179 | 14,904 | 14,301 | ||||||
| Available-for-sale financial investments | 362 | 344 | 347 | ||||||
| Derivative financial instruments | 0 | 0 | 1,053 | ||||||
| Trade and other receivables | 3,736 | 2,954 | 3,613 | ||||||
| Total non-current assets | 923,226 | 762,800 | 795,638 | ||||||
| Current assets | |||||||||
| Inventories | 18,852 | 15,786 | 13,803 | ||||||
| Trade and other receivables | 154,123 | 122,402 | 125,333 | ||||||
| Income tax receivables | 7,408 | 11,063 | 5,114 | ||||||
| Derivative financial instruments | 2,480 | 1,054 | 825 | ||||||
| Cash and cash equivalents | 17,028 | 14,541 | 22,313 | ||||||
| Total current assets | 199,891 | 164,846 | 167,388 | ||||||
| Assets available for sale | 6,227 | 2,838 | 2,671 | ||||||
| TOTAL ASSETS | 1,129,344 | 930,484 | 965,697 | ||||||
| EQUITY AND LIABILITIES | |||||||||
| Equity | |||||||||
| Share capital | 24,835 | 24,835 | 24,835 | ||||||
| Other reserves | 300,718 | 186,926 | 188,797 | ||||||
| Fair value reserve | 117 | 117 | 117 | ||||||
| Hedging fund | -4,321 | -2,571 | -1,197 | ||||||
| Translation differences | -3,156 | 583 | 3,426 | ||||||
| Retained earnings | 106,741 | 94,567 | 103,309 | ||||||
|
Equity attributable to shareholders of the parent company |
424,934 | 304,457 | 319,287 | ||||||
| Non-controlling interest | 0 | 503 | 503 | ||||||
| Hybrid capital | 49,630 | 49,630 | 49,630 | ||||||
| Total equity | 474,564 | 354,589 | 369,420 | ||||||
| Non-current liabilities | |||||||||
| Interest-bearing liabilities | 360,657 | 324,568 | 346,776 | ||||||
| Derivative financial instruments | 5,539 | 5,284 | 2,543 | ||||||
| Deferred tax liabilities | 87,068 | 76,435 | 78,348 | ||||||
| Provisions | 1,569 | 0 | 0 | ||||||
| Other non-current liabilities | 5,448 | 1,729 | 4,207 | ||||||
| Total non-current liabilities | 460,282 | 408,016 | 431,875 | ||||||
| Current liabilities | |||||||||
| Interest-bearing liabilities | 75,958 | 71,024 | 57,569 | ||||||
| Derivative financial instruments | 180 | 1,146 | 1,853 | ||||||
| Trade and other payables | 112,708 | 90,611 | 100,984 | ||||||
| Income tax liabilities | 5,653 | 5,098 | 3,997 | ||||||
| Total current liabilities | 194,499 | 167,879 | 164,403 | ||||||
| Total liabilities | 654,780 | 575,895 | 596,277 | ||||||
| TOTAL EQUITY AND LIABILITIES | 1,129,344 | 930,484 | 965,697 | ||||||
| CONSOLIDATED INCOME STATEMENT 1 Jan 2011 - 31 Sep 2011 (EUR 1,000) | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 | ||||
| Sales | 181,637 | 130,356 | 486,989 | 345,719 | 492,103 | ||||
| Other operating income | 1,624 | 1,432 | 5,415 | 10,856 | 15,110 | ||||
| Change in inventories of finished goods and work in progress | 40 | 1,156 | 141 | 1,875 | 1,015 | ||||
| Production for own use | 3,117 | 1,811 | 6,398 | 2,575 | 4,694 | ||||
| Materials and services | -63,592 | -48,343 | -175,648 | -124,507 | -183,479 | ||||
| Employee benefit expense | -32,812 | -23,953 | -96,748 | -73,585 | -101,939 | ||||
| Other operating expenses | -34,461 | -25,998 | -107,463 | -79,044 | -109,880 | ||||
| Depreciation and impairment on tangible assets and assets available for sale | -25,074 | -21,308 | -71,817 | -63,467 | -83,145 | ||||
| EBITA | 30,479 | 15,153 | 47,267 | 20,422 | 34,478 | ||||
| % of sales | 16.8 % | 11.6 % | 9.7 % | 5.9 % | 7.0 % | ||||
| Amortisation and impairment on intangible assets resulting from acquisitions | -2,963 | -1,838 | -8,256 | -5,144 | -7,089 | ||||
| Operating profit / loss (EBIT) | 27,516 | 13,315 | 39,012 | 15,278 | 27,389 | ||||
| % of sales | 15.1 % | 10.2 % | 8.0 % | 4.4 % | 5.6 % | ||||
| Finance costs (net) | -7,506 | -6,129 | -17,116 | -18,842 | -22,586 | ||||
| Profit / loss before taxes | 20,010 | 7,186 | 21,897 | -3,564 | 4,804 | ||||
| % of sales | 11.0 % | 5.5 % | 4.5 % | -1.0 % | 1.0 % | ||||
| Income taxes | -4,515 | -5,399 | -8,943 | -7,002 | -7,007 | ||||
| Profit / loss for the period | 15,495 | 1,786 | 12,954 | -10,567 | -2,203 | ||||
| % of sales | 8.5 % | 1.4 % | 2.7 % | -3.1 % | -0.4 % | ||||
| Attributable to: | |||||||||
| Equity holder of parent | 15,495 | 1,801 | 12,954 | -10,521 | -2,142 | ||||
| Non-controlling interest | -15 | -46 | -61 | ||||||
| Profit / loss attributable to equity holders' of parent | |||||||||
| Earnings per share, undiluted, EUR | 0.38 | 0.05 | 0.34 | -0.31 | -0.06 | ||||
| Earnings per share, diluted, EUR | 0.38 | 0.05 | 0.34 | -0.31 | -0.06 | ||||
|
COMPREHENSIVE INCOME STATEMENT 1 Jan 2011 - 31 Sep 2011 (EUR 1,000) |
7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 | ||||
| Profit / loss for the period | 15,495 | 1,786 | 12,954 | -10,567 | -2,203 | ||||
| Other comprenhesive income | |||||||||
| -Change in hedging fund, net of tax | -4,859 | 202 | -3,124 | -275 | 1,099 | ||||
| -Change in exchange rate differences, net of tax | -4,732 | 10,083 | -9,539 | 29,761 | 33,956 | ||||
| Total other comprehensive income | -9,591 | 10,285 | -12,663 | 29,486 | 35,055 | ||||
| Comprehensive income for the period | 5,904 | 12,071 | 291 | 18,919 | 32,852 | ||||
| CHANGES IN CONSOLIDATED STATEMENT OF EQUITY (EUR 1,000) | Share capital | Share issue and other reserves | Fair value reserve | Retained earnings, translation differences, hedging fund | Attributable to equity holders of the parent company | Non-controlling interest | Hybrid capital | Total equity |
| At 1 Jan 2010 | 24,835 | 186,910 | 117 | 76,390 | 288,252 | 503 | 49,630 | 338,385 |
| Total comprehensive income | 18,919 | 18,919 | 18,919 | |||||
| Dividend distribution | ||||||||
| Share-based payments | 1,725 | 1,725 | 1,725 | |||||
| Non-controlling interest | ||||||||
| Hybrid capital | -4,440 | -4,440 | -4,440 | |||||
| Changes within equity | 16 | -16 | ||||||
| At 30 Sep 2010 | 24,835 | 186,926 | 117 | 92,579 | 304,456 | 503 | 49,630 | 354,589 |
| At 1 Jan 2011 | 24,835 | 188,797 | 117 | 105,538 | 319,287 | 503 | 49,630 | 369,420 |
| Total comprehensive income | 291 | 291 | 291 | |||||
| Dividend distribution | -3,163 | -3,163 | -3,163 | |||||
| Exercise of share options | 7,262 | 7,262 | 7,262 | |||||
| Share issue | 97,398 | 97,398 | 97,398 | |||||
| Issue of shares related to business combination | 7,266 | 7,266 | 7,266 | |||||
| Share-based payments | 2,166 | 2,166 | 2,166 | |||||
| Non-controlling interest | 427 | 427 | -503 | -76 | ||||
| Hybrid capital | -6,000 | -6,000 | -6,000 | |||||
| At 30 Sep 2011 | 24,835 | 300,723 | 117 | 99,259 | 424,934 | 49,630 | 474,564 | |
| CONSOLIDATED CASH FLOW STATEMENT 1 Jan 2011 - 30 Sep 2011 (EUR 1,000) | 1-9/11 | 1-9/10 | 1-12/10 |
| Net cash flow from operating activities | 77,645 | 29,501 | 68,333 |
| Net cash flow from investing activities | -165,518 | -2,769 | -40,940 |
| Cash flow from financing activities | |||
| Change in interest-bearing receivables | 177 | 100 | -610 |
| Change in finance lease liabilities | -25,485 | -28,552 | -35,309 |
| Change in interest-bearing liabilities | 12,756 | 3,389 | 15,952 |
| Hybrid capital | -6,000 | -6,000 | -6,000 |
| Proceeds from share options exercised | 7,262 | 1,871 | |
| Proceeds from share issue | 97,397 | ||
| Non-controlling interest | -76 | ||
| Dividends paid | -3,163 | ||
| Net cash flow from financing activities | 82,868 | -31,062 | -24,095 |
| Change in cash and cash equivalents | -5,005 | -4,330 | 3,298 |
| Cash and cash equivalents at period start | 22,313 | 18,520 | 18,520 |
| Translation differences | -280 | 351 | 495 |
| Cash and cash equivalents at period end | 17,028 | 14,541 | 22,313 |
| COMMITMENTS AND CONTINGENT LIABILITIES | 30 Sep 2011 | 30 Sep 2010 | 31 Dec 2010 |
| On own behalf | |||
| Mortgages on company assets | - | 83,317 | - |
| Pledges | - | 177,487 | - |
| Pledges, finance lease | 147,715 | 148,509 | 154,091 |
| Interest on hybrid capital | 2,518 | 2,532 | 4,044 |
| Investment commitments | 21,624 | 5,765 | 1,226 |
| Commitments to office and depot rents | 113,811 | 83,994 | 98,271 |
| Operational lease payments | 51,929 | 39,324 | 37,602 |
| Other commitments | 1,064 | 1,318 | 580 |
|
DERIVATIVE FINANCIAL INSTRUMENTS (EUR 1,000) |
30 Sep 2011 | 30 Sep 2010 | 31 Dec 2010 |
| Fair value | |||
| Interest rate swaps | -5,539 | -5,331 | -1,490 |
| Currency forwards | 2,300 | -66 | -1,028 |
| Nominal value | |||
| Interest rate swaps | 179,510 | 190,154 | 181,331 |
| Currency forwards | 145,642 | 119,425 | 177,380 |
| MODULAR SPACE ORDER BOOK (EUR 1,000) | 30 Sep 2011 | 30 Sep 2010 | 31 Dec 2010 |
| Value of outstanding orders for modular space | 100,796 | 88,743 | 87,685 |
| Value of orders for modular space rental | 89,737 | 81,501 | 83,261 |
| Value of orders for sale of modular space | 11,059 | 7,242 | 4,424 |
| SHARE RELATED KEY FIGURES | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 |
| Earnings per share (EPS), EUR 1) | 0.38 | 0.05 | 0.34 | -0.31 | -0.06 |
| Earnings per share (EPS), diluted, EUR 2) | 0.38 | 0.05 | 0.34 | -0.31 | -0.06 |
| Shareholders’ equity per share, EUR 3) | 10.33 | 10.03 | 9.50 | ||
| Number of shares, end of period | 41,439,086 | 30,660,189 | 30,660,189 | ||
| Number of shares, issue-adjusted, average 4) | 38,416,655 | 30,343,901 | 33,596,870 | ||
| Number of shares, issue-adjusted, end of period 4) | 41,122,798 | 30,343,901 | 33,596,870 | ||
| Number of shares, diluted by share options, average | 38,416,655 | 31,088,238 | 35,003,710 |
- Calculated from issue-adjusted average number of shares
- Calculated from diluted average number of shares
- Calculated from issue-adjusted number of shares at the end of the period
- Number of shares deducted by shares held by Cramo Management Oy
INFORMATION PRESENTED BY BUSINESS SEGMENT
The Group’s segments are divided geographically and consist of Finland, Sweden, Norway, Denmark, Central Europe and Eastern Europe.
| Sales (EUR 1,000) | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 |
| Finland | 34,067 | 27,430 | 93,528 | 69,181 | 99,583 |
| Sweden | 78,980 | 64,839 | 219,569 | 177,337 | 251,857 |
| Norway | 20,687 | 17,023 | 58,269 | 49,453 | 69,120 |
| Denmark | 9,705 | 8,395 | 23,712 | 20,863 | 29,493 |
| Central Europe | 20,957 | 51,513 | |||
| Eastern Europe | 19,254 | 14,361 | 47,122 | 34,073 | 49,886 |
| Inter-segment sales | -2,012 | -1,693 | -6,724 | -5,187 | -7,837 |
| Group sales | 181,637 | 130,356 | 486,989 | 345,719 | 492,103 |
| EBITA (EUR 1,000) | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 |
| Finland | 7,667 | 6,105 | 14,091 | 9,201 | 12,466 |
| % of sales | 22.5 % | 22.3 % | 15.1 % | 13.3 % | 12.5 % |
| Sweden | 17,173 | 12,332 | 40,083 | 26,586 | 41,186 |
| % of sales | 21.7 % | 19.0 % | 18.3 % | 15.0 % | 16.4 % |
| Norway | 1,004 | 310 | 269 | -96 | 303 |
| % of sales | 4.9 % | 1.8 % | 0.5 % | -0.2 % | 0.4 % |
| Denmark | 295 | -831 | -1,985 | -5,322 | -5,328 |
| % of sales | 3.0 % | -9.9 % | -8.4 % | -25.5 % | -18.1 % |
| Central Europe | 2,932 | 3,383 | |||
| % of sales | 14.0 % | 6.6 % | |||
| Eastern Europe | 2,569 | -1,488 | -1,173 | -10,374 | -11,464 |
| % of sales | 13.3 % | -10.4 % | -2.5 % | -30.4 % | -23.0 % |
| Non-allocated capital gains and other income | 5,746 | 5,746 | |||
| Non-allocated Group activities | -1,281 | -1,304 | -7,670 | -5,308 | -8,380 |
| Eliminations | 122 | 29 | 270 | -10 | -52 |
| Group EBITA | 30,479 | 15,153 | 47,267 | 20,422 | 34,478 |
| % of sales | 16.8 % | 11.6 % | 9.7 % | 5.9 % | 7.0 % |
| Depreciation (EUR 1,000) | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 |
| Finland | -4,509 | -3,712 | -12,911 | -11,128 | -14,566 |
| Sweden | -9,334 | -8,439 | -27,139 | -24,003 | -31,916 |
| Norway | -2,970 | -2,404 | -7,849 | -7,333 | -9,613 |
| Denmark | -956 | -1,378 | -3,100 | -4,686 | -5,692 |
| Central Europe | -2,411 | -6,193 | |||
| Eastern Europe | -4,940 | -5,388 | -14,772 | -16,314 | -21,399 |
| Non-allocated items and eliminations | 46 | 13 | 146 | -3 | 41 |
| Total | -25,074 | -21,308 | -71,817 | -63,467 | -83,145 |
| Reconciliation of Group EBITA to earnings before taxes (EUR 1,000) | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 |
| Group EBITA | 30,479 | 15,153 | 47,267 | 20,422 | 34,478 |
| Amortisation and impairment on intangible assets resulting from acquisitions | -2,963 | -1,838 | -8,256 | -5,144 | -7,088 |
| Net finance items | -7,506 | -6,130 | -17,116 | -18,842 | -22,586 |
| Earnings before taxes | 20,010 | 7,186 | 21,897 | -3,564 | 4,804 |
| Capital expenditure (EUR 1,000) | 7-9/11 | 7-9/10 | 1-9/11 | 1-9/10 | 1-12/10 |
| Finland | 6,040 | 2,353 | 20,155 | 8,126 | 34,854 |
| Sweden | 15,207 | 6,315 | 76,518 | 18,048 | 35,133 |
| Norway | 5,573 | 3,523 | 21,989 | 4,788 | 8,453 |
| Denmark | 2,220 | 0 | 3,152 | 11 | 690 |
| Central Europe | 5,050 | 87,934 | |||
| Eastern Europe | 3,427 | 657 | 15,420 | 1,355 | 5,143 |
| Non-allocated items and eliminations | 255 | 184 | 1,016 | 876 | 1,946 |
| Total | 37,772 | 13,032 | 226,184 | 33,204 | 86,219 |
| Assets (EUR 1,000) | 30 Sep 2011 | 30 Sep 2010 | 31 Dec 2010 |
| Finland | 175,034 | 141,362 | 164,906 |
| Sweden | 494,892 | 444,005 | 449,591 |
| Norway | 113,117 | 97,255 | 98,415 |
| Denmark | 49,133 | 50,313 | 49,150 |
| Central Europe | 103,065 | ||
| Eastern Europe | 142,632 | 149,135 | 146,903 |
| Non-allocated items and eliminations | 51,471 | 48,412 | 56,732 |
| Total | 1,129,344 | 930,484 | 965,697 |
QUARTERLY SEGMENT INFORMATION
| Sales by segment (EUR 1,000) | 7-9/11 | 4-6/11 | 1-3/11 | 10-12/10 | 7-9/10 | 4-6/10 | 1-3/10 |
| Finland | 34,067 | 31,271 | 28,191 | 30,403 | 27,430 | 22,694 | 19,056 |
| Sweden | 78,980 | 72,488 | 68,101 | 74,521 | 64,839 | 60,602 | 51,895 |
| Norway | 20,687 | 17,378 | 20,204 | 19,667 | 17,023 | 15,332 | 17,097 |
| Denmark | 9,705 | 7,750 | 6,257 | 8,630 | 8,395 | 6,728 | 5,740 |
| Central Europe | 20,957 | 19,945 | 10,612 | 0 | 0 | 0 | 0 |
| Eastern Europe | 19,254 | 14,999 | 12,869 | 15,812 | 14,361 | 10,698 | 9,014 |
| Inter-segment sales | -2,012 | -2,695 | -2,017 | -2,649 | -1,693 | -2,092 | -1,403 |
| Group sales | 181,637 | 161,135 | 144,217 | 146,384 | 130,356 | 113,964 | 101,400 |
| EBITA by segment (EUR 1,000) | 7-9/11 | 4-6/11 | 1-3/11 | 10-12/10 | 7-9/10 | 4-6/10 | 1-3/10 |
| Finland | 7,667 | 4,248 | 2,176 | 3,265 | 6,105 | 2,546 | 550 |
| % of sales | 22.5 % | 13.6 % | 7.7 % | 10.7 % | 22.3 % | 11.2 % | 2.9 % |
| Sweden | 17,173 | 13,566 | 9,344 | 14,600 | 12,332 | 8,835 | 5,418 |
| % of sales | 21.7 % | 18.7 % | 13.7 % | 19.6 % | 19.0 % | 14.6 % | 10.4 % |
| Norway | 1,004 | -1,150 | 415 | 399 | 310 | -303 | -103 |
| % of sales | 4.9 % | -6.6 % | 2.1 % | 2.0 % | 1.8 % | -2.0 % | -0.6 % |
| Denmark | 295 | -646 | -1,634 | -6 | -831 | -1,268 | -3,224 |
| % of sales | 3.0 % | -8.3 % | -26.1 % | -0.1 % | -9.9 % | -18.8 % | -56.2 % |
| Central Europe | 2,932 | 1,640 | -1,189 | ||||
| % of sales | 14.0 % | 8.2 % | -11.2 % | ||||
| Eastern Europe | 2,569 | -1,524 | -2,218 | -1,089 | -1,488 | -4,047 | -4,839 |
| % of sales | 13.3 % | -10.2 % | -17.2 % | -6.9 % | -10.4 % | -37.8 % | -53.7 % |
| Non-allocated capital gains and other income | 0 | 0 | 0 | 0 | 0 | 0 | 5,746 |
| Non-allocated Group activities | -1,281 | -1,904 | -4,485 | -3,072 | -1,304 | -1,931 | -2,073 |
| Eliminations | 122 | 103 | 45 | -42 | 29 | -66 | 27 |
| Group EBITA | 30,479 | 14,334 | 2,455 | 14,056 | 15,153 | 3,766 | 1,503 |
| % of sales | 16.8 % | 8.9 % | 1.7 % | 9.6 % | 11.6 % | 3.3 % | 1.5 % |
LARGEST SHAREHOLDERS
| TEN LARGEST SHAREHOLDERS 30 Sep 2011 | SHARES | % | |
| 1 | Hartwall Capital Oy Ab | 6,491,702 | 15.67 |
| 2 | K. Hartwall Invest Oy | 2,732,000 | 6.59 |
| 3 | Rakennusmestarien Säätiö (Construction engineers' fund) | 2,129,422 | 5.14 |
| 4 | Mariatorp Oy | 1,250,000 | 3.02 |
| 5 | Sijoitus-Wipunen Oy | 850,000 | 2.05 |
| 6 | Odin Finland | 839,920 | 2.03 |
| 7 | Nordea Nordenfund | 779,199 | 1.88 |
| 8 | Fondita Nordic Micro Cap | 557,000 | 1.34 |
| 9 | Rakennusmestarit ja -insinöörit AMK RKL ry | 391,220 | 0.94 |
| 10 | Fennia Life Insurance Company Ltd | 379,000 | 0.91 |
| Ten largest owners, total | 16,399,463 | 39.57 | |
| Nominee registered and non-Finnish holders | 10,526,742 | 25.40 | |
| Others | 14,512,881 | 35.02 | |
| Total | 41,439,086 | 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 31 October 2011
CRAMO Plc
Board of Directors
The information in this Interim Report is based on unaudited figures.
BRIEFING
Cramo will hold a briefing and live webcast at Kämp Kansallissali, address: Aleksanterinkatu 44 A, 2nd floor, Helsinki, on 1 November 2011 at 11.00 am. The briefing will be in English.
To view the briefing live on the Internet, go to www.cramo.com. A recording of the webcast will be available at www.cramo.com from 1 November 2011 in the afternoon.
PUBLICATION OF FINANCIAL INFORMATION 2012
Cramo Plc’s Financial Statements Bulletin for 2011 will be published on Tuesday, 14 February 2012.
The Annual Report containing the full financial statements for 2011 will be published in electronic format in week 9/2012.
The 2012 Annual General Meeting will take place on Friday, 23 March 2012, in Helsinki.
Cramo will publish three Interim Reports in 2012.
The January–March Interim Report will be published on Friday 4 May 2012.
The January–June Interim Report will be published on Wednesday 8 August 2012.
The January–September Interim Report will be published on Wednesday 31 October 2012.
FURTHER INFORMATION
Vesa Koivula
President and CEO, tel. 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 approximately 400 depots. With a group staff close to 2.400, Cramo's consolidated sales in 2010 was EUR 500 million. Cramo shares are listed on the NASDAQ OMX Helsinki Ltd. Further information: www.cramo.com
