At the Annual General Meeting of shareholders of Cramo Plc on April 1, 2009, the company’s President and CEO Vesa Koivula commented in his speech the current market conditions as follows:
“As anticipated, the economic operating environment in Cramo’s markets has continued to weaken in the first quarter of 2009. The amount of construction is expected to fall in all the Nordic as well Central and Eastern European markets in 2009. However, after the first two months of 2009 Cramo’s EBITA is still positive, supported by good performance in modular space and satisfactory performance in Sweden, Finland and Norway.
Fluctuating demand on one hand, and timing of savings programs and related one-off restructuring costs on the other, will lead to increased volatility in single quarterly results in 2009.
On a yearly level, the Group reiterates its guidance for 2009: “In 2009, consolidated sales and EBITA margin will not reach the levels recorded in 2008. However, the Group’s cash flow after investments is expected to stay positive.”
Cramo continues its systematic cost adjustment measures to protect its profitability and its cash flow in all situations. We expect to reduce our headcount by over 20 per cent from the high in August 2008.
Our new estimate for total cost savings to be recorded in 2009 reads: in excess of 30 million euros.”