11.08.2010

Ramirent upbeat

Finnish based international rental company Ramirent has reported its first half results, showing a small profit for the period while revenues picked up pace in the second quarter.

Revenues for the six months were down 2.6 percent to €240.3 million, held back by a hard start to the year in many markets. Second quarter revenues were up 3.3 percent on the same period last year at €128.7 million.

Pre-Tax profits for the first six months were just €100,000 compared to €12.3 million in the first quarter of 2009, while for the second quarter they were a healthier €6.1 million, but still well down on last year’s €11.3 million.

Six month revenue statistics for each market were as follows:
-Finland up 2.6% for the six months up - 6% for the quarter
-Sweden down 0.6% for the six months - up 7% for the quarter
-Norway up 3% for the six months - up 9% for the quarter
-Denmark down 25% for the six months - down 22.6% for the quarter
-Central Europe down 8% for the six months - down 3% for the quarter

In terms of profitability Finland, Sweden and Norway were all profitable, while Denmark lost just over €1 million, East Europe – Russia and the Baltic States – lost €4 million compared to €6 million last year and Central Europe lost €2.3 million roughly the same as last year’s loss. Combined sales to Central and Eastern Europe were therefore €52 million with an operating loss of €6.3 million.

Capital expenditure was €34.2 million for the six months compared with €7.3 million last year, of this €26.4 million involved expenditure on new equipment while the balance related to acquisitions.

The company has also announced a new management incentive programme and a major share buy-back programme.

Chief executive Magnus Rosén said: “The second quarter 2010 was the first quarter with growth in net sales since the third quarter 2008. Market activity is picking up, and balance between supply and demand has improved in most of our product groups. In certain product groups we are even experiencing a shortage of equipment. On the back of a recovering demand, we are also taking actions to return to healthier price levels”.

“While we expect activity to be at a higher level in the second half of 2010, there are still uncertainties in the overall economy. Therefore, we maintain our near-term priorities on safeguarding profitability and cash flow as well as on price discipline.”

“In the second quarter, we made new inroads in widening our customer base with industrial customers through an outsourcing and cooperation agreement signed with Havator for access equipment in the Nordic countries, Russia and the Baltics. We also expanded our network in the Czech Republic. With our strong financial position, we are well positioned to take part in the market consolidation and will continue to monitor the market for interesting opportunities. We believe in a continued interest from customers to outsource their own machinery fleets in favour of our progressive equipment rental solutions.”