22.02.2010

Ramirent sees improvement

International rental company, Ramirent has reported an improvement in fourth quarter profitability while revenues for the year dipped 28%.

Total 2009 revenues for the group were €502.5 million for the year, down 28.5 percent on 2008. The fourth quarter showed a slight easing with revenues down 27 percent. Pre-tax profits for the full year were €12.7 million a fall of 75 percent on the prior year, while the company posted a loss for the fourth quarter of €7.3 million compared to a loss in the same period last year of €32.8 million.

Revenues declined in all of the groups regions, with Finland holding up best with a fall of 13 percent, and Europe East (Russia, Ukraine and the Baltic states) the worst dropping 43 percent. For the rest, Sweden was down 25 percent, Denmark 27.4 percent, Norway 25 percent and Europe Central 26.7 percent.

In terms of operating profits all of the operations remained positive except Denmark and Europe East. Sweden being the most profitable of the group.

Capital expenditure for the year was just €17.5 million compared to €201 million in 2008, a fall of over 91 percent.

As a result of this and good cash flow, net debt was cut by almost 32 percent to €207 million.

Chief executive Magnus Rosén said “2009 was a demanding year. As expected, the fourth quarter was in terms of operating profit the weakest of the year.
The reported profits are not satisfactory. However, in the current economic environment, I am pleased with the healthy cash flow that continued and that we were able to improve our financial position. We were also able to complete our
cost saving program and surpassed the fixed cost savings target. Our personnel have done excellent work in a very demanding environment.”

“Going forward we are in good shape to capture opportunities that may be provided due to the recession and to improve profits before taxes in 2010. We expect 2010 to be challenging and therefore near-term priority remains on
safeguarding profitability and generating cash flow. Focus remains strong on right-sizing the fleet and re-allocating fleet between markets as well as keeping investments at a low level.”

“In the long- In the long-term, the prospects of the equipment rental sector
remains favourable. Although a cyclical and capital-intensive sector, the business remains cash generative and cash flow is reinforced by reduced investment spending in a downturn. Our goal is to maintain market leading positions and to continue our long-term profitable growth. ”