In spite of the instability of the financial markets and economic developments in the US, a good demand for rental services is expected to continue in Cramo’s main markets. Growth in construction coupled with major infrastructure projects in industry and the public sector will continue to fuel growth in the equipment rental business. Nordic construction is expected to continue its growth, but at a lower rate than in previous years. Although overall growth in construction is affected by a decline in residential construction, industrial and commercial construction together with civil engineering projects will continue to grow. Central and Eastern Europe are expected to see sustained strong growth in construction. In the Baltic countries, in spite of good long-term growth prospects, the market is temporarily down. Equipment rental services are expected to expand at a faster rate compared to general growth in construction, due 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. This demand is supported by relocations, demographic changes and the industry’s needs for increasingly flexible building solutions.
Growing demand and the geographic expansion of operations will require substantial capital expenditure also in 2008.
In line with its strategy, the Group intends to further enhance its position in all of its market areas. The Group will continue to map out its growth potential both in the Nordic countries and in Central and Eastern Europe. The supply of modular space in Central and Eastern Europe is seen as a new growth opportunity.
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, macroeconomic developments may change this picture.