Ramirent hit by slower Finland and Norway

Slower construction markets in Finland and Norway and the completion of some major projects in Sweden led to a fall in Ramirent’s revenues in the first quarter of the year. EBITDA profits were down 38% year-on-year to €7.1 million.

Demand levels improved in Denmark, Poland and the Baltic States, based on increasing construction activity.

Quarterly revenues were down 10% to €137.5 million, although after adjusting for divestments and transfers this fall reduced to 2%. The company said profit levels were not satisfactory and that measures to improve returns would be prioritised.

Ramirent said economic growth in its territories was likely to remain modest this year, with its capital investment on fleet remaining at similar levels to last year.

The joint venture company with Cramo in Russia and the Ukraine, FortRent, was likely to be impacted by the political situation, said Ramirent, with sanctions on Russia having “stronger effects on the near-term economic outlook for Russia and Ukraine…The market situation is likely to remain challenging in Ukraine.”

Magnus Rosén, Ramirent’s CEO, said; “The EBITA margin is not at satisfactory level and we will prioritise measures to strengthen profitability. Efficiency improvement measures were intensified in the first quarter…Implementation of specific actions to reach the targeted Group EBITA margin level of 17% by the end of 2016 continued in the first quarter.”