Solid organic sales growth supported by both business divisions
Cramo’s organic sales growth was solid, supported by the good performance of the two business divisions. In particular, the business segments Equipment Rental Scandinavia, Equipment Rental Finland and Eastern Europe, and Modular Space contributed positively to the Group’s organic sales growth. The profitability of Cramo also improved in 2017.
The Equipment Rental division’s results were strong, driven by good market demand in our main markets: organic sales increased and profitability improved. Sales increased sharply in Sweden and Eastern Europe, and the trend was positive in most markets in Central Europe. In Finland, Norway and Germany, our organic sales growth and profitability were more modest.
In Equipment Rental Scandinavia, sales growth was affected by the divestment of operations in Denmark. In Sweden, market activity continued to be strong throughout the year. Sales for Equipment Rental Finland and the Eastern Europe segment grew despite the divestment of Latvian and Kaliningrad operations. Demand was strong in the Eastern European countries throughout the year. In Finland, the market development trend was positive, especially in the Helsinki metropolitan area and in other big cities. In Central Europe, sales increased, driven by the positive trend in Austria, the Czech Republic and Slovakia, while sales decreased in Germany. The segment’s profitability developed positively.
In Modular Space, project deliveries picked up during the second half of the year, and the year ended with strong sales growth. Profitability was hit mainly by cost overruns and organisational restructuring in Finland and Germany. Positive effects are expected to follow in 2018 due to steps taken in the form of reorganisation activities and improved project management. The demand for modular space projects was on a good level in all countries where Modular Space operates. Market growth was particularly strong in the school and daycare segments.
Business divisions’ share of group
Equipment Rental Scandinavia
Sales MEUR 380.1 (378.8)
Comparable EBITA MEUR 72.7 (64.5)
Comparable ROCE 19.1% (16.6%)
Operations in Sweden and Norway. Denmark, divested on 31 August 2017.
Number of depots 124 (135)
Equipment Rental Finland and Eastern Europe
Sales MEUR 143.0 (138.6)
Comparable EBITA MEUR 25.2 (22.3)
Comparable ROCE 13.4% (12.0%)
Operations in Finland, Estonia, Lithuania and Poland. Latvia and Kaliningrad, divested on 1 August 2017.
Number of depots 105 (118)
Equipment Rental Central Europe
Sales MEUR 80.5 (77.9)
Comparable EBITA MEUR 4.4 (3.8)
Comparable ROCE 4.7% (4.0%)
Operations in Germany, Austria, Hungary, the Czech Republic and Slovakia.
Number of depots 70 (71)
Sales MEUR 126.5 (117.6)
Comparable EBITA MEUR 28.8 (30.8)
Comparable ROCE 9.1% (11.1%)
Operations in Finland, Sweden, Norway, Denmark, Estonia, Lithuania and Germany.
Latvia divested on 1 August 2017