Improved demand in most products says Ramirent
11 August 2010
Ramirent's revenues increased by 3.3% to €128.7 million for the second quarter of 2010 compared to the same period in 2009, the first increase since the third quarter of 2008. The company said it expected increases in demand seen in most of its product groups to continue for the rest of 2010.
Magnus Rosén, Ramirent's CEO, said; "Market activity is picking up, and the 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."
Ramirent said there were still economic uncertainties and that it would maintain its "near-term priorities on safeguarding profitability and cash flow as well as on price discipline." Net profits for the period were €4.3 million.
Demand improved in the Nordic countries, Russia and Ukraine picked up and the business climate improved in Poland, although impacted by floods. Construction activity remained at a low level in Slovakia, the Czech Republic and Hungary, and "small signs" of recovery were seen in the Baltic countries.
Meanwhile, Ramirent plans to purchase up to 390000 of its own shares (valued at around €3.1 million). The shares will be used as part of its employee incentive programme,to help finance acquisitions, or in other business initiatives "in the best interests of the company and its shareholders."