Occupation rate

Strukton is a capital-intensive company managing a large, specialist fleet of machines and equipment, in particular relating to rail systems. This fleet is mostly owned by Strukton. The cost is depreciated on the economic operational life of the object. Negative cash flow will not directly be the result if Strukton fails to deploy its fleet at self-funding rates, but this will have a negative effect on Strukton’s result. Additionally, a large portion of Strukton employees has permanent employment contracts. The company’s profitability and cash flow will be negatively affected if these employees are not employed at current projects at self-funding rates, which may for example be the case if there are not many orders. Strukton Rail manages this risk with international expansion in the European market and with international deployment of both its fleet and its employees. Major investments are in some cases shared with partners. Additionally, Strukton limits the understaffing risk by continuously aiming for an increase in the share of non-project based activities. This is in line with the life cycle approach that is applied within all Strukton companies.