The construction and equipment rental service markets are expected to grow in Cramo’s market areas in the fourth quarter of 2010 and in 2011. According to market forecasts, construction activity started to increase in 2010 in Finland, Sweden and possibly also in Russia. In Poland, growth is expected to continue. However, construction activity in Norway, Denmark, the Czech Republic and the Baltic countries is expected to decline on an annual level. In 2010, the outlook for the Baltic countries has improved. The outlook for construction growth is positive for 2011 in all of Cramo’s business segments.
The demand for rental services is expected to increase during the fourth quarter of 2010 and continuing into 2011. The improving market acceptance of equipment rental as an alternative to owning supports market growth. Construction companies also find arrangements under which they outsource their equipment to rental services companies increasingly attractive.
The Group’s gross capital expenditure, excluding acquisitions and business combinations, will be approximately EUR 40 million in 2010. A balance between the demand for and supply of rental equipment was achieved in almost all markets in the third quarter, which provides a solid starting point for business development.