Ramirent still on "recovery path"
By Murray Pollok04 November 2010
Ramirent's sales for the quarter to the end of September were up 8.8% to €140.09 million, although the increase falls to 3.3% on a like-for-like currency basis. Net profits for the period were up 70% to €8.5 million.
The company said the quarter saw a continuation of the "recovery path" that started in the Spring, with the improved sales and profitability reflecting more activity, improving utilisation and gradually improving pricing.
Magnus Rosén, Ramirent chief executive officer, said; "We are encouraged by the development in the third quarter, and while there are still uncertainties in the overall economy in the short term, we expect rental services markets to continue to recover. To meet the anticipated demand, we are continuously growing our outlet network, which now consists of 375 outlets.
"We see a continuously increasing interest from our customers to outsource their equipment fleets. In addition, there are an increasing number of acquisition opportunities in the market. With our strong financial position, we are well positioned to take part in the market consolidation through select acquisitions and outsourcing cases."
Results for the different territories reveal a widely varying performance. In Ramirent' largest market, Finland, sales fell by 9% in the quarter, but were up 6% after adjusting for inter-company sales. Sales grew by 17.2% in Sweden, its next most important country. Sales were up a little in Norway and up 8.3% in Europe Central (Poland, Hungary, the Czech Republic and Slovakia).
Sales fell by 14.8% in Denmark, where the business is under "persistent and intense price competition", and by 34.8% in Europe East (Russia, Baltic States and Ukraine), although this reverses to plus 25% growth when inter-company sales are accounted for.
Ramirent said there were positive market signs in the Baltic States and there was higher construction activity in Russia and the Ukraine.