10.05.2011

Ramirent lifts revenues 20.5%

Finnish based international rental company Ramirent has reported first quarter revenues up 20.5 percent.

Revenues for the quarter were €134.4 million, which resulted in a pre-tax loss of €200,000 compared to a loss of €6 million in the same quarter last year.

Revenues improved at all of Ramirent’s operating units: Finland was up 7.7 percent, Sweden 40.5 percent, Norway 15 percent, Denmark 3.2 percent, Europe East 25.4 percent and Europe Central 19 percent. With Denmark, East and Central Europe posting losses of €1.3, €1.7 and €1.1 million respectively.

Capital expenditure during the period was €31.9 million compared to €12.5 million last year. €29.6 million of the spend was on equipment for the rental fleet.Net debt was cut by 10 percent during the period to €190.6 million.

Chief executive Magnus Rosén said: “The positive development that started in the autumn 2010, continued during the first quarter of the year. Activity levels continued to grow in all our operating countries although January-March is typically the quietest quarter of the year. Equipment utilisation rates increased supported by improved demand in customer industries.”

“We continued our work on making new inroads into new customer sectors with new cooperation agreements established in the agriculture sector and railroad construction sector. During the quarter, we also succeeded in finalising one acquisition in Denmark and two outsourcing deals one in Finland and another in Denmark. We continue to monitor the market for interesting consolidation opportunities.”

“Profitability improved, but is still burdened by lower price levels compared to pre-downturn levels. Our priority during 2011 is to focus on increasing price levels as the demand is returning to our various product groups. On top of this, we are continuing to develop our offering and product portfolio to cater to our customer’s needs especially in the areas related to eco-efficiency and safety.”

Vertikal Comment

Ramirent continues to outperform its Finnish based neighbour Cramo and given its recent acquisitions in the Czech Republic, which are not included in these numbers, looks set to at least keep up in terms of revenue with Cramo, in spite of the latter’s purchase of German based Thiesen.

It is also good to see revenues bounce back so strongly in Eastern/Central Europe which had dipped steeply after several years of strong growth but now appear to be back on a solid upward trajectory.
All in all this is yet another positive indicator for the industry as a whole.