Cramo uprates full year guidance

Cramo said it will grow its business "significantly" this year and double its EBITA profits in a upgrading of its guidance for the year. It had previously said sales would grow and that profitability would improve.

However, the company has responded to Eurozone concerns by reducing its capital expenditure plans and by undertaking cost cutting. It said it had updated contingency plans in the event that Europe's economy worsened in 2012.

The company said that despite increased market uncertainty its third quarter had been positive, making profits in all its business areas and reporting strong sales growth in eastern Europe. Sales for the quarter to 30 September were up 39.3% to €181.6 million.

Cramo's new central Europe division, incorporating the Theisen business in Germany, Austria, Hungary and Switzerland, posted sales of €20.9 million and EBITA profits of €2.9 million, and "developed favourably" against the previous year (when it was not owned by Cramo), with Germany and Austria seeing improvements in demand.

Vesa Koivula, president and CEO of Cramo Group, said the demand for rental services and price level continued to develop favourably; "I am particularly delighted to report strong sales growth and profit improvement in Eastern Europe, as well as the continued positive development of our Central European segment, which was formed in connection with the acquisition of Theisen Group."

Mr Koivula said the third quarter was shadowed by the economic uncertainty in Europe; "Because of increased risk levels, we decided to cut our fleet investments and increase the efficiency of fleet optimisation, particularly between our market areas. We will also increase our efficiency by cutting costs, and we have updated contingency plans that are in place in all of our markets."

The company reported no major market changes in its main market areas - Finland, Sweden, Norway and Germany - and said that in many Eastern European countries recovery has only just got underway after the previous downturn.

"The current general market situation continues to be favourable for Cramo", said Mr Koivula, "The uncertainties concern the development in 2012."