Economic development is expected to remain favourable with respect to Cramo’s business environment. Growth in construction activity 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 and the growth rate to stabilise at a slightly lower level. Central and Eastern Europe are expected to see sustained strong growth in construction. Equipment rental services expand at a faster rate compared to general growth in construction, due to factors such as increasing penetration rates for these services. Demand for modular space is also expected to continue its increase, supported by relocations, demographic changes and industry needs for increasingly flexible building solutions.
The continuing demand in all of the Group’s main markets will require continued capital expenditure growth in 2008 year over year.
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 in the Nordic countries and Central and Eastern Europe. The supply of modular space in Central and Eastern Europe is seen as a new growth opportunity.
The most significant uncertainties faced by Cramo’s business are associated with country-specific cyclical and economic development, changes in interest and foreign exchange rates as well as the success of the Group’s acquisitions.
Cramo’s performance and sales for 2007 are expected clearly to exceed their 2006 levels.
For the next twelve months, the Group’s internal, as well as market indicators support a sales growth above 18 % and EBITA above 18 % of sales, in line with the Group’s financial targets. However, macroeconomic developments may change this picture.