04.11.2010

Ramirent up 9%

Finnish based international rental company Ramirent has posted its third quarter results with revenues for the quarter up 8.8 percent.

Revenues for the nine months to the end of September were up just over one percent to €381.2 million, while pre-tax profits slipped nearly 39 percent to €12.1 million.

For the quarter sales were up 8.8 percent to €140.9 million while pre-tax profits increased almost 60 percent to €12 million.

Looking at the group’s geographic breakdown, both Sweden and Norway increased their revenues, while Finland and Europe Central saw declines of around two percent, while Denmark and Europe East saw substantial falls in revenues with Denmark down 22 percent and East Europe down 27 percent.

All of the company’s entities remained profitable except for Europe East which lost €4.7 million, although this loss if half the level recorded this time last year.

Ramirent has spent €43.9 million on capital expenditure so far this year, of which €35 million was on new rental equipment. The number of locations that the group operate from increased in the year from 344 to 375.

The group’s net debt was reduced from €230 million to €197 million – just €10 million or so lower than at the start of this year.

Ramirent chief executive Magnus Rosén said: “In the third quarter the rental industry continued on the recovery path that started in spring time. Both our sales and profitability improved in the third quarter reflecting the increase in market activity, improving utilisation rates for our equipment as well as gradually improving pricing levels.”

“We are encouraged by the development in the third quarter, and while there are still uncertainties in the overall economy in the short term, we expect rental services markets to continue to recover. To meet the anticipated demand, we are continuously growing our outlet network, which now consists of 375 outlets.”

“We see a continuously increasing interest from our customers to outsource their equipment fleets. In addition, there are an increasing number of acquisition opportunities in the market. With our strong financial position, we are well
positioned to take part in the market consolidation through select acquisitions
and outsourcing cases.”

Vertikal Comment

Another positive set of quarterly results indicate the fact that the European economy is recovering. In particular the news from the hard hit Baltic states is encouraging along with that of Russia and central Europe.

Ramirent has done well during the slow down to reduce its debt, without decimating the average age of its fleet and has at the same time taken the opportunity to prepare the way for any upturn.