Ramirent hit by slowing Finland and Norway

Weakening demand in Finland and Norway in the final quarter of the year contributed to a 5.9% fall in like-for-like revenues at Ramirent, with annual revenues down 4.2% to €647.3 million.

Annual EBITDA profits were down 7.3% to €195.1 million, with pre-tax profits 23.1% lower at €63.9 million.

Ramirent said it had intensified efforts to improve profitability in Finland and Norway in the face of weakening demand in the final quarter. Elsewhere, demand in Sweden and the Baltic States remained healthy, while business in Denmark picked up, but from low levels.

In Europe Central – Poland, Czech Republic and Slovakia – Ramirent said market development was still weak but showed signs of stabilisation.

Magnus Rosén, Ramirent CEO, said the company would target profit improvements in 2014; “Ramirent is pursuing an EBITA margin of at least 18% for all segments, which will deliver a 300 bps EBITA margin improvement at Group level, from 14% in 2012 to 17% by the end of 2016. Specific actions to reach the EBITA margin target will be implemented across our countries during 2014.”

He said economic growth in 2014 was expected to be modest; “We will maintain strict cost control and capital expenditure is expected to be around the same level as in 2013...

“We have set up a clear growth strategy which includes pursuing outsourcing opportunities and selected small− to mid−sized acquisitions as well as evaluating entry to new sectors and geographies. Accelerated growth will be sought from defined growth pockets such as energy, oil and gas and the public sector.”