Vantaa, Finland, 2017-07-26 08:00 CEST (GLOBE NEWSWIRE) -- Cramo Plc Half Year Financial Report 26 July 2017, at 9.00 am (EET)
Cramo’s Half Year Financial Report January-June 2017
APRIL–JUNE 2017
- Sales EUR 178.0 (179.1) million, declining by 0.6%. In local currencies, sales grew by 1.5%.
- EBITA EUR 27.8 (26.6) million and EBITA margin 15.6% (14.9%)
- Earnings per share EUR 0.42 (0.40)
- Cash flow from operating activities EUR 27.1 (39.3) million and cash flow after investments EUR -14.0 (-5.2) million
JANUARY–JUNE 2017
- Sales EUR 340.9 (334.5) million, up by 1.9%. In local currencies, sales grew by 3.2%.
- EBITA EUR 47.5 (39.6) million and EBITA margin 13.9% (11.8%)
- Earnings per share EUR 0.71 (0.56)
- Cash flow from operating activities EUR 69.3 (62.9) million and cash flow after investments EUR -8.6 (-9.5) million
SIGNIFICANT EVENTS
- Acquisition of assets of Just Pavillon A/S in Denmark as of 1 June 2017
- Mr Philip Isell-Lind af Hageby appointed Senior Vice President, Modular space on 28 April 2017
- After the reporting period on 14 July 2017, announcement of divestment of Danish equipment rental operations to Loxam A/S
KEY FIGURES
| KEY FIGURES AND RATIOS (MEUR) | 4-6/17 | 4-6/16 | Change % | 1-6/17 | 1-6/16 | Change % | 2016 |
| Sales | 178.0 | 179.1 | -0.6 % | 340.9 | 334.5 | 1.9 % | 712.3 |
| Comparable EBITA | 27.8 | 26.6 | 4.3 % | 47.5 | 39.6 | 20.0 % | 111.1 |
| % of sales | 15.6% | 14.9% | 13.9% | 11.8% | 15.6% | ||
| EBITA | 27.8 | 26.6 | 4.3 % | 47.5 | 39.6 | 20.0 % | 106.7 |
| % of sales | 15.6% | 14.9% | 13.9% | 11.8% | 15.0% | ||
| Profit for the period | 18.8 | 17.9 | 5.0 % | 31.4 | 24.9 | 25.9 % | 68.6 |
| Comparable EPS, EUR | 0.42 | 0.40 | 4.9 % | 0.71 | 0.56 | 25.8 % | 1.70 |
| ROCE, %* | 11.1% | 9.7 % | 10.6 % | ||||
| Comparable ROCE, %* | 11.9% | 9.9 % | 11.4 % | ||||
| ROE, % | 15.1% | 12.9 % | 13.6 % | ||||
| Comparable ROE, % | 16.6% | 13.3 % | 14.9 % | ||||
| Net debt/EBITDA | 1.86 | 2.03 | 1.77 | ||||
| Net interest-bearing liabilities | 427.9 | 404.9 | 5.7 % | 387.0 | |||
| Gross capital expenditure (incl. acquisitions) | 68.6 | 69.2 | -0.8 % | 104.1 | 99.8 | 4.3 % | 207.3 |
| Cash flow from operating activities | 27.1 | 39.3 | -31.0 % | 69.3 | 62.9 | 10.2 % | 172.2 |
| Cash flow after investments | -14.0 | -5.2 | -8.6 | -9.5 | 7.3 | ||
| Average number of personnel (FTE) | 2,582 | 2,521 | 2.4 % | 2,550 |
* ROCE = EBIT (rolling 12 months) / capital employed (average start and end of period)
CEO LEIF GUSTAFSSON’S COMMENT
The market environment has remained favourable in both of our business divisions and good performance in equipment rental continued. In the second quarter, sales grew in local currencies in equipment rental despite of negative impact of timing of Easter. In modular space, rental sales continued to increase compared to last year, however the growth was still below our expectations especially in Finland.
Profitability improved in equipment rental business division in all segments. In modular space, profitability improved from the first quarter, but was still on a lower level than last year. Strict actions to improve operative processes continued in order to secure better profitability going forward.
In June, we strengthened our market share in modular space in Denmark by acquiring assets of Just Pavillon A/S. The acquisition complements our modular space fleet well. In July, we announced the divestment of Danish equipment rental operations. These steps are fully in line with Cramo’s strategy to strengthen its position in markets where the company has the potential to be the market leader and where we see the best returns on capital employed.
Looking ahead, I expect demand to continue to be on a good level for the rest of the year both in equipment rental and modular space.
GROUP PERFORMANCE
SALES Cramo Group’s consolidated sales for January–June were EUR 340.9 (334.5) million, showing an increase of 1.9%. In local currencies, sales grew by 3.2%. Sales growth was driven by good demand in equipment rental business in all market areas. Equipment rental sales increased by 3.3% (in local currencies 4.6%). In modular space total sales decreased by 5.2% (3.8% in local currencies), but rental sales increased by 7.4%.
Sales in the second quarter were slightly lower compared to last year and totalled EUR 178.0 (179.1) million. In local currencies, sales increased by 1.5%. The second quarter sales were negatively affected by the timing of Easter compared to last year.
RESULT
Cramo Group’s consolidated EBITA for January–June was EUR 47.5 (39.6) million, showing an increase of 20.0%. EBITA margin was 13.9% (11.8%) of sales. Profitability improved mainly due to sales growth and higher gross margin. January-June EBIT was EUR 45.8 (37.1) million. Net financial expenses were EUR 6.1 (5.5) million. Profit before taxes totalled EUR 39.7 (31.5) million and profit for the period was EUR 31.4 (24.9) million.
EBITA for the second quarter increased by EUR 1.1 million and came to EUR 27.8 (26.6) million or 15.6 (14.9) per cent of sales. Profitability improved due to sales mix and enhanced gross margin. April-June EBIT EUR was 26.9 (25.4) million. April-June profit before taxes was EUR 23.8 (22.7) million and profit for the period was EUR 18.8 (17.9) million.
In January–June, earnings per share were EUR 0.71 (0.56). Second-quarter earnings per share were EUR 0.42 (0.40). Return on equity (rolling 12 months) improved and was 15.1% (12.9%). Comparable return on equity (rolling 12 months) was 16.6% (13.3%).
MARKET OUTLOOK
In Cramo countries, the construction market outlook for 2017 is mainly positive. The construction market analysts Euroconstruct and Forecon estimated in June that the construction market will grow approximately 2% in Finland, Denmark and Germany, and 6% in Norway and Latvia. In Lithuania, the market is expected to grow 1% and in Estonia 3%. In Czech Republic the total construction market is not expected to grow. The Russian construction market is expected to decline 2% in 2017. For Sweden, the Euroconstruct and the local Sverige’s Byggindustrier both estimate approximately 8% growth for 2017. According to the latest estimate of the Confederation of Finnish Construction Industries, the construction market will grow approximately 2.5% in Finland.
European Rental Association (ERA) forecasts that the equipment rental market will grow in all of Cramo’s operating countries that are within the scope of ERA’s forecast.
BRIEFING
Cramo will hold a briefing and a live webcast at Kämp Kansallissali, address: Aleksanterinkatu 44 A, 2nd floor, Helsinki, on Wednesday 26 July 2017 at 11.00 am (EET). The briefing will be in English.
The briefing can be viewed live on the internet at www.cramogroup.com . A replay of the webcast will be available at www.cramogroup.com on 26 July 2017 in the afternoon.
PUBLICATION OF FINANCIAL INFORMATION IN 2017
In 2017, Cramo will publish one more business review:
Business Review January–September 2017 on 25 October 2017 .
CRAMO PLC
Leif Gustafsson President and CEO
Further information: Mr Leif Gustafsson, President and CEO, tel: +358 10 661 10 Mr Aku Rumpunen, CFO, tel: +358 10 661 10, +358 40 556 3546 Mr Mattias Rådström, SVP, Communication, Marketing and Investor Relations, tel: +46 70 868 7045
Distribution: Nasdaq Helsinki Ltd. Major media www.cramogroup.com
Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in fifteen countries and in 324 depots. With a group staff around 2,600, Cramo's consolidated sales in 2016 was EUR 712 million. Cramo shares are listed on Nasdaq Helsinki Ltd.
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