Rental recovery under way says Cramo as sales grow 13%

Cramo's third quarter revenues grew by 13% to €130.3 million compared to the same quarter in 2009 and operating profits increased by 70% to €13.3 million. Sales grew year on year in all its territories except Denmark.

The company has improved its outlook guidance, stating unequivocally that the rental market is improving. Its previous guidance described a gradually improving market with uncertainties.

Vesa Koivula, Cramo's chief executive officer, said; "An upturn has occurred in the market as expected. Residential construction in particular has picked up in several markets. Thanks to improvements in demand and the adjustments we have made, the utilisation rates of Cramo's fleet have substantially improved."

Mr Koivula said rental growth in Sweden and Finland - its two most important markets - had lagged behind improvements in construction activity, with first signs of construction growth in the first quarter now feeding through to rental; "Because of the positive outlook in construction and the economy, similar developments can be expected in all of Cramo's market areas."

In the three months to 30 September, Cramo's best performing area was central and eastern Europe, where revenues grew by 21% to €14.4 million. Next was Sweden, with growth of 17% to €64.8 million, followed by Finland, up 15% to €27.4 million.

Sales in Norway rose by 9% to €17.0 million and the only market to see a decline was Denmark, which was down 13% to €8.4 million. Cramo said the Danish construction market would decline in 2010 before recovering in 2011.

Vesa Koivula said that outsourcing agreements were starting to gain momentum; "We have concluded several outsourcing agreements and acquisitions in the Nordic
region within the past six months. Interest in fleet outsourcing is a new trend among not just major construction companies but mid-sized operators as well."