Strukton is a capital-intensive company that manages a large, specialised equipment fleet, particularly in the field of rail infrastructure. Most of the equipment is owned by Strukton. The associated costs are depreciated over the useful life of the equipment. If Strukton is unable to use the equipment profitably, there is no immediate cash outflow but there is a negative impact on the result.
In addition, a large proportion of Strukton’s staff are employed on a permanent basis. If staff cannot be deployed on projects at profitable rates, for example because there is insufficient work, this has a negative impact on the company’s profitability and cash flow.
Strukton Rail compensates for this through expansion in the European market and by deploying equipment and staff internationally. The strategy of international expansion entails cooperation with local partners. In a number of cases, major capital investments are shared with partners. Moreover, Strukton limits the risk of underutilisation through its policy of continuously increasing the proportion of non-project-related activities. This strategy is also reflected in the lifecycle approach adopted at all Strukton companies.