Stable third quarter for Ramirent
07 November 2014
Ramirent net sales fell in the third quarter to September by 1.6% to €163.6. But adjusted for divested operations, net sales were up by 1.9% at comparable exchange rates.
Earnings before interest, tax and amortisation were up to €28 million from €25.9 million, or 17.1% of net sales.
The company carried out a number of initiatives in the quarter, including adjusting the cost base its low performing segments, especially in the Swedish and Norwegian operations.
In Norway, a €1.9 million restructuring provision was booked. In Denmark, activities to streamline operations cross-border with Sweden continued and in Finland non-core yard and storage operations were outsourced. Cost reductions will continue in the fourth quarter, said the company, with the full effect of these actions expected to apparent in 2015.
During the quarter a three-year agreement was the signed with Skanska’s machinery department in Sweden. After the end of the quarter, the company also renewed its cooperation agreement with Veidekke in Norway for the next three years. In Finland, construction company Hartela outsourced its tower cranes fleet to Ramirent and signed a five-year rental agreement.
For the three quarters from January to September net sales were down 5.6% to €452.9. Adjusted for transferred or divested operations, net sales were down by 0.3% at comparable exchange rates.
EBITA for the three months was €51.3, done from €71.2 million in the same period last year or 11.3% of net sales, down from 14.8%.
Profit for the period EUR 28.1 (40.1) million and EPS EUR 0.26 (0.37)
Magnus Rosén, Ramirent CEO, commentated, “After several quarters of decline in sales, we saw a small increase of 1.9% in our third-quarter net sales at comparable exchange rates and adjusted for divested operations.
"I am pleased to report an increase in our third-quarter EBITA margin from 15.6% last year to 17.1%. The market picture remained mixed, with no major market changes during the third quarter
“We continue to work to improve the performance and future-readiness of our business. Our efficiency programme is progressing according to plan. Based on our continued solid financial position, we are well positioned to continue pursuing outsourcing opportunities and acquisitions.”
The company forecasts modest growth for the rest of 2014, with the fortunes in construction market remaining mixed in core markets. By the end of 2014 total capital expenditure is expected to be around the same as in 2013.