Extract from stock exchange release published on 11th November, 2008

Economic uncertainty overall has increased since mid-September. The Group sees a negative development in construction volumes particularly in the Nordic region and the Baltic countries in 2009. Cramo anticipates, however, that the impact on the demand for rental services will not be as severe as it is feared to be in construction in general. This is related to increasing penetration rates, increased equipment outsourcing, and growth in the demand for rental-related services. Continued growth is also anticipated in the demand for modular space, supported by relocations, demographic changes and the industry’s and public administration’s needs for increasingly flexible space solutions.

In a cyclical downturn, rental services provide an attractive alternative to purchasing new equipment. With its relatively high utilisation rates, rental is more cost-efficient compared to owned equipment. It also releases investment funds for other usage. The modular space business, on the other hand, is less cyclical than equipment rental. Cramo believes that a portion of the construction projects cancelled or postponed due to lack of funding, will be offset by the rental of modular space. In spite of an overall slowdown in construction, the modular space market is believed to continue to grow. At the same time, there is a permanent pent-up demand for construction in Central and Eastern Europe.

Expansion has required the Group to maintain a high level of capital expenditure up to 2008. As a consequence, a growing percentage of the Group´s business will be generated in the emerging markets in the future. The high investments have also produced a modern and competitive fleet. Now, however, Cramo Group has embarked on an “investment holiday” for the balance of 2008 and total 2009. Instead of investing in new equipment, the Group will focus on optimising the use of its existing fleet throughout the whole Group. The Group will also continue its systematic cost adjustment measures, defending the Group’s profitability and cash flow from operations at a good level in the new market situation.

Several European currencies have weakened in relation to the Euro. If current exchange rates stay, there will be a negative translational impact on the Group’s Euro-based consolidated figures.

The Group reconfirms its sales growth guidance at above 18% and an EBITA above 18% of sales in 2008, in line with the Group’s financial targets. However, the risk level has increased.

In 2009, in a volatile environment, the Group expects to achieve a positive cash flow after investments and a lower gearing.

BUSINESS REVIEW FOR JANUARY-DECEMBER 2018

Business Review Q4 2018

Business Review for January-December 2018 was published on 8 February 2019.

Calendar

  • 25 Mar 2019Last day to register for AGM
  • 28 Mar 2019Annual General Meeting 2019
  • 1 Apr 2019Dividend record date

Welcome to Cramo Investor pages

Cramo is a service company specialising in equipment rental services, as well as rental of modular space. Our equipment rental services comprise machinery and equipment rental as well as rental-related services.

As one of the industry’s leading service providers in Europe, Cramo operates in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Poland, Germany, Austria, Hungary, the Czech Republic and Slovakia. In Russia and Ukraine we operate under the brand of the 50 percent owned joint venture Fortrent.

Cramo provides modern rental solutions through the Cramo Concept. Under the Cramo Concept, construction companies and customers in trade, industry and the public sector, as well as private customers, are provided with machinery, equipment and modular space through different rental solutions and services.

By combining the product portfolio with its extensive offering of services, Cramo reduces the capital invested by its customers and can create total rental solutions for every need for both the short and long term.

Through a network of about 300 depots, with a total number of rental items over 230,000, Cramo’s 2,600 employees serve over 150,000 customers in fourteen countries.

Cramo is a Nordic Mid Cap Company in the Industrials sector on Nasdaq Helsinki Ltd.