06.05.2010

Tough start for Ramirent

Finish based international rental company Ramirent has released its first quarter results which show that it had a hard start to the year although it is seeing an improvement in the second quarter.

Total revenues were €111.5 million nearly nine percent down on the same quarter last year. The fall in sales partly due to a very cold winter affected every country in which it operates, with Denmark showing the greatest decline falling 29 percent, East Europe fell 20 percent and Central Europe 14 percent. The rest of the Nordic countries fared a little better with Sweden dropping eight percent while Finland and Norway declined around two percent.

The result of the lower revenues was a pre-tax loss of €6 million compared to a profit last year of €949,000.

In spite of the tough winter the company quadrupled its capital expenditure – albeit from a low base to €12.5 million, while selling around €5 million of older equipment.

Towards the end of the period Ramirent acquired the three Hyrmaskiner operations in Sweden, which trade as Tidermans Hyrmaskiner. Net debt at the end of the quarter was €212 million compared to €281 million at the same time last year although this was up marginally the end of December.

Chief executive Magnus Rosén said: “The first quarter is generally the weakest quarter of the year, this year the first quarter was further burdened by exceptionally cold winter conditions coupled with an overall slow market affecting our operations negatively in all Ramirent countries. The group's net debt also increased due to capital expenditures and a weak start for the year, but it remains at a healthy level, and cash flow for the year is expected to be positive.”

“Towards the end of the quarter, signs of improving demand in certain product
groups were visible in the Nordic region and in Russia.”

“We expect 2010 to remain challenging as harsh winter conditions have
delayed the start of the high season. Near-term priorities, therefore, continue
to be safeguarding profitability, right-sizing the fleet and cash flow.”