Finnish rental company Ramirent has issued a more downbeat full-year 2014 outlook, and said it expected to be hit by €4 million in restructuring costs.
President and CEO Magnus Rosén said the revision was due to the accelerating impact on the company’s main markets of geopolitical uncertainty combined with a rapidly declining oil price.
“We anticipate a moderate decline in the net sales level in the fourth quarter compared to fourth quarter 2013,” he said.
“As a result, our investments in the rental fleet are held back. In addition, we are taking further measures to improve the performance.
"Restructuring measures and write-downs are expected to have a €4 million negative effect on fourth quarter 2014 earnings before interest, taxes and amortisation (EBITA).”
Mr Rosén said full year 2014 capital expenditure on non-current assets, excluding acquisitions, was expected to be approximately 10% lower than in 2013.”
Previously, Ramirent had said economic growth in 2014 was expected to be modest and construction market demand remains mixed in its core markets.
Its previous forecast had seen it commit to maintaining strict cost control, expecting capital expenditure to be stable year-on-year and prospects for profitable growth opportunities to continue.