Strategy and strategy execution

Sales increased and profitability improved

Cramo’s sales growth in 2018 was solid and positively affected by acquisitions. The market environment was good for both of our business divisions, which further supported organic sales growth. Profitability improved, which was mainly due to organic sales growth in the Modular Space and Equipment Rental Scandinavia segments.

The Equipment Rental division’s performance was solid. The division’s sales increased, supported by good demand in all our main markets. All segments, and particularly Scandinavia, contributed positively to the division’s organic sales growth. Profitability increased slightly although it was negatively affected by modest sales development in Finland and Germany.

Organic sales growth for the Equipment Rental Scandinavia segment was strong. In Sweden, sales were supported by large projects and good market activity. In Norway, sales growth was strong, driven by good demand, increased utilisation rates, large projects and growth investments. The segment’s profitability improved due to increased organic sales and good cost control.

In Finland and Eastern Europe, sales increased despite the divestment of the Latvian and Kaliningrad operations. Organic sales growth was driven in particular by accelerated growth in Poland, Estonia and Lithuania. In Finland, sales decreased slightly. The segment’s profitability decreased.

Sales and profitability in the Equipment Rental Central Europe segment increased. In the Czech Republic and Austria, sales grew strongly while in Germany total sales were at a lower level compared to the previous year. The acquisition of KBS Infra contributed positively to the segment’s sales growth, profit and profitability.

The Modular Space division’s rental sales and total sales grew strongly. Sales growth was positively affected by the NMG acquisition. A good level of project deliveries during the past few quarters and improved utilisation rates supported the increase in rental sales. Profitability increased mainly due to higher utilisation and rental sales as well as performance improvement actions carried out in 2017 and 2018.

Reporting segments

Equipment Rental Scandinavia 2018 (2017)

Sales MEUR 370.5 (380.1)
Comparable EBITA MEUR 73.3 (72.7)
Comparable ROCE 19.3% (18.7%)

Operations in Sweden and Norway.

Number of depots 118 (124)

Sales by customer group, MEUR

Equipment Rental Finland and Eastern Europe 2018 (2017)

Sales MEUR 145.0 (143.0)
Comparable EBITA MEUR 22.5 (25.2)
Comparable ROCE 11.4% (13.1%)

Operations in Finland, Estonia, Lithuania and Poland.

Number of depots 110 (105)

Sales by customer group, MEUR

Equipment Rental Central Europe 2018 (2017)

Sales MEUR 114.1 (80.5)
Comparable EBITA MEUR 8.9 (4.4)
Comparable ROCE 5.7% (4.7%)

Operations in Germany, Austria, Hungary, the Czech Republic and Slovakia.

Number of depots 73 (70)

Sales by customer group, MEUR

Modular Space 2018 (2017)

Sales MEUR 151.5 (126.5)
Comparable EBITA MEUR 36.8 (28.8)
Comparable ROCE 8.8% (9.1%)

Operations in Finland, Sweden, Norway, Denmark, Estonia, Lithuania and Germany.

Sales by customer group, MEUR