Ramirent profits up despite slowing first quarter

A slowdown in many of Ramirent’s markets in the first quarter of the year led to a 7% decline in revenues to €152.8 million, although profit before tax increased by 42.5% to €15.2 million.

The company has also reorganised its management structure, creating an executive management committee on top of its existing group management team, with promotions to Bjørn Larsen, Erik Alteryd, Mikael Kämpe, Anna Hyvönen and Dino Leistenschneider, all of whom are on the new executive team.

A “slightly declining underlying market” coupled with an unusually long winter in the Nordic countries led to revenue falls in Finland, Norway and Denmark, with Sweden the only Nordic market to see an increase (of 4.4%).

The company also scaled down its Eastern European operation (Poland, Czech Republic, Slovakia, and Hungary), with the number of depots falling from 103 to 76 over the past 12 months and the employee numbers reducing from 726 to 613. Ramirent made a €2.9 million impairment charge on goodwill at its Hungarian business, reflecting poor market conditions.

Magnus Rosén, Ramirent CEO, said; “In the first quarter, our net sales were affected by a slightly declining underlying market and a long winter season especially in the Nordic countries, where construction start-ups have been postponed. Demand in the industrial sector remained stable during the first three months of the year.”

He said the macroeconomic situation in Europe remained uncertain; “we are prepared for changes in the operating environment. Ramirent seeks sustainable profitable growth and we want to maintain our strong balance sheet. We will be cautious with costs and capital expenditure.”

The company invested €29.3 million in its fleet in the first quarter of the year, compared to €20.3 million in the same period a year ago.

Meanwhile, the new management structure sees the creation of a new executive team to work alongside the group management team. Ramirent said the new structure would “add operational efficiency and organisational clarity.”

The executive team comprises:

• Magnus Rosén, group president and CEO.
• Jonas Söderkvist, chief financial officer has also been appointed executive vice president, corporate functions.
• Anna Hyvönen, previously senior vice president for Finland, is now executive vice president, Finland and Baltic.
• Bjørn Larsen, the senior vice president for Norway becomes executive vice president, Norway.
• Erik Alteryd becomes executive vice president, Sweden and Denmark (effective June 2013).
• Mikael Kämpe, currently director, group fleet has been appointed executive vice president, Europe Central.
• Dino Leistenschneider, currently director, group sourcing, will head a new organisation that combines sourcing and fleet management. His role will be executive vice president, sourcing and fleet management.

The group management team includes, in addition to the executive management team, the following members:

• Tomasz Walawender, currently senior vice president, Europe Central has been appointed, senior vice president, Poland, reporting to Mikael Kämpe.
• Erik Høi continues as senior vice president, Denmark, reporting to Erik Alteryd.
• Heiki Onton, currently country manager, Baltics, has been appointed senior vice president, Baltics and reports to Anna Hyvönen.
• Franciska Janzon, currently director, corporate communications, investor relations, has been appointed senior vice president, marketing, communications, investor relations.
• Peggy Hansson, currently head of HR has been appointed senior vice president, human resources, health and safety.
• Mats Munkhammar, currently chief information officer, has been appointed senior vice president and CIO.