Ramirent ‘not pleased’ with 2016 financial results

Finland-based rental company Ramirent said it was aiming for a sustainable profit improvement in 2017, following its 2016 financial results.

The company’s reported earnings before interest, taxes, depreciation and amortization (EBITDA) was €59.2 million, down 11.3% year-on-year, leaving the company displeased with its results.

Ramirent said its results were impacted by one-off asset write-downs and reorganisation costs, relating to its temporary space business in Norway, operations in Sweden, and an ERP system implementation, announced last October.

However, the company’s revenues grew 4.6% year-on-year to €665.2 million.

Tapio Kolunsarka, Ramirent CEO, said, “We are not pleased with our financial performance in 2016 and thus we are focused on achieving sustainable profit improvement in 2017.

“Our sales grew in all markets except for Denmark and we were pleased to see that we achieved a good sales mix in most of our segments during the quarter.”

He added that sales growth was fastest in Finland, as a result of a strong market, but profitability only slightly improved due to higher costs and a higher share of service sales.

He said profit improved in Sweden, driven by net sales growth, stabilising costs and a higher share of general rental.

Mr Kolunsarka continued, “In Norway, overall market demand for general rental was fair and we managed to stabilise our temporary space business. In Denmark, the improving trend in profitability also continued.

“In Europe Central, the previously announced reorganisation actions started to improve profitability already during the quarter. In the Baltics, demand was stable and a good level of profitability was maintained.”

Ramirent’s aim for 2017 will be to turn around its non-performing units, improve sales and fleet productivity, according to Mr Kolunsarka.