2015-08-06 08:00:00 CEST
2015-08-06 08:00:05 CEST
REGULATED INFORMATION
Ramirent - Interim report (Q1 and Q3)
RAMIRENT’S INTERIM REPORT JANUARY–JUNE 2015: PERFORMANCE IMPROVING DUE TO HIGHER DEMAND AND EFFICIENCY ACTIONS
RAMIRENT PLC INTERIM REPORT 6 AUGUST 2015 at 9:00
Vantaa, Finland, 2015-08-06 08:00 CEST (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
PERFORMANCE APRIL-JUNE 2015
• Net sales EUR 159.4 (151.8) million, up by 5.0% or by 6.9% at comparable
exchange rates
• EBITDA EUR 46.0 (42.2) million or 28.9% (27.8%) of net sales
• EBITA EUR 21.0 (16.2) million or 13.2% (10.7%) of net sales
• EBITA excluding non-recurring items1) EUR 17.2 (16.2) million or 10.8%
(10.7%) of net sales
• Profit for the period EUR 13.2 (7.1) million and EPS EUR 0.12 (0.07)
1) Non-recurring items includes a non-recurring income of 3.8 MEUR recognised
from the settlement of earn-out in the weather shelter and scaffolding company
DCC acquired in 2014.
PERFORMANCE JANUARY-JUNE 2015
• Net sales EUR 300.0 (289.3) million, up by 3.7% or by 6.2% at comparable
exchange rates
• EBITDA EUR 74.6 (73.9) million or 24.9% (25.5%) of net sales
• EBITA EUR 25.2 (23.3) million or 8.4% (8.0%) of net sales
• EBITA excluding non-recurring items EUR 21.3 (23.3) million or 7.1% (8.0%) of
net sales
• Profit for the period EUR 13.1 (9.7) million and EPS EUR 0.12 (0.09)
• Return on invested capital (ROI) on a rolling 12 months basis improved to
12.3% (11.9%)
• Return on equity (ROE) on a rolling 12 months basis was 11.5% (12.1%)
• Gross capital expenditure EUR 65.0 (101.8) million
• Cash flow after investments EUR −21.4 (−24.5) million
• Net debt EUR 297.1 (273.4) million and net debt to EBITDA was 1.8x (1.6x)
RAMIRENT OUTLOOK FOR FULL YEAR 2015 UNCHANGED
Ramirent expects the market picture for 2015 to remain mixed, with challenging
market conditions especially in Finland and Norway. We expect full-year 2015
net sales and EBITA margin to be similar to the level of 2014 when measured in
local currencies.
KEY FIGURES 4-6/15 4-6/14 Change 1-6/15 1-6/14 Change 1-12/1
4
--------------------------------------------------------------------------------
(MEUR)
--------------------------------------------------------------------------------
Net sales 159.4 151.8 5.0% 300.0 289.3 3.7% 613.5
--------------------------------------------------------------------------------
EBITDA 46.0 42.2 9.0% 74.6 73.9 1.0% 167.9
--------------------------------------------------------------------------------
% of net sales 28.9% 27.8% 24.9% 25.5% 27.4%
--------------------------------------------------------------------------------
EBITA excluding 17.2 16.2 6.4% 21.3 23.3 −8.4% 71.5
non-recurring items
--------------------------------------------------------------------------------
% of net sales 10.8% 10.7% 7.1% 8.0% 11.7%
--------------------------------------------------------------------------------
EBITA 21.0 16.2 30.2% 25.2 23.3 8.1% 65.8
--------------------------------------------------------------------------------
% of net sales 13.2% 10.7% 8.4% 8.0% 10.7%
--------------------------------------------------------------------------------
EBIT 18.8 14.2 31.9% 20.7 19.6 5.7% 58.1
--------------------------------------------------------------------------------
% of net sales 11.8% 9.4% 6.9% 6.8% 9.5%
--------------------------------------------------------------------------------
EBT 16.7 9.1 82.1% 16.4 12.4 32.9% 42.5
--------------------------------------------------------------------------------
% of net sales 10.4% 6.0% 5.5% 4.3% 6.9%
--------------------------------------------------------------------------------
Result for the period 13.2 7.1 84.2% 13.1 9.7 35.4% 32.6
attributable to the
owners of the parent
company
--------------------------------------------------------------------------------
Earnings per share 0.12 0.07 84.2% 0.12 0.09 35.3% 0.30
(EPS), (basic and
diluted), EUR
--------------------------------------------------------------------------------
Gross capital 46.8 78.3 −40.2% 65.0 101.8 −36.2% 144.6
expenditure on
non-current assets
--------------------------------------------------------------------------------
Gross capital 29.4% 51.6% 21.7% 35.2% 23.6%
expenditure, % of net
sales
--------------------------------------------------------------------------------
Cash flow after −22.3 −19.4 −15.0% −21.4 −24.5 12.6% 21.8
investments
--------------------------------------------------------------------------------
Invested capital at the 602.4 610.5 −1.3% 555.2
end of period
--------------------------------------------------------------------------------
Return on invested 12.3% 11.9% 12.2%
capital (ROI),%1)
--------------------------------------------------------------------------------
Return on equity 11.5% 12.1% 9.4%
(ROE),%1)
--------------------------------------------------------------------------------
Net debt 297.1 273.4 8.7% 227.1
--------------------------------------------------------------------------------
Net debt to EBITDA 1.8x 1.6x 11.0% 1.4x
ratio1)
--------------------------------------------------------------------------------
Gearing,% 97.9% 84.2% 69.9%
--------------------------------------------------------------------------------
Equity ratio,% 39.0% 40.3% 43.7%
--------------------------------------------------------------------------------
Personnel at end of 2,682 2,651 1.2% 2,576
period (FTE)
--------------------------------------------------------------------------------
1) Rolling 12 months
COMMENTS FROM CEO MAGNUS ROSÉN:
“Overall the second quarter developed according to our expectations. Ramirent's
second-quarter net sales grew by 5.0% to EUR 159.4 million or 6.9% at
comparable exchange rates. Second-quarter sales grew in all segments except for
Norway. Demand improved topline especially towards the end of the quarter.
After a weaker first quarter, our Group EBITA excluding non-recurring items
improved somewhat to EUR 17.2 (16.2) million. The EBITA-margin was 10.8%
(10.7%) for the second quarter and 7.1% (8.0%) for the first half. EBITA was
supported by an increase in Customer Centre sales, progress in Solutions
projects as well as good fixed cost control in the operations. We continue to
focus on improving the profitability level.
Our efficiency programme and work on the improvement agenda NextRamirent
proceeded in the second quarter. We continued to develop our offering of
solutions and value added services to sharpen differentiation. Among other
things, we signed a letter of intent with NCC Roads to start exploring
possibilities for closer cooperation in road and traffic safety. Our determined
work on developing the common business platform targeted to drive efficiency
and harmonise our operational model continued. We are seeing performance
improving from implemented efficiency actions in particular the centralising of
maintenance and repair operations, reduction of non-productive fleet and from
establishing a shared service centre for financial services. In the quarter, we
also continued enhancing pricing management procedures and improving fleet
utilisation by developing the productivity of our supply chain management. As
communicated earlier, the margin improvement stemming from these actions is
expected to materialise mainly in 2016 and onwards.
Sales growth accelerated in Sweden supported by high overall construction
activity and our profitability improved as the large solution projects
advanced. In Denmark, our activity levels picked up and cost reduction measures
started to show results. Also in Europe Central, net sales picked up owing to
an increase in construction of roads, industrial buildings and especially in
Poland power plants. In Baltics, we saw continued strong performance supported
by a healthy construction activity.
In Norway, on the other hand, our performance weakened compared to the previous
year due to lower demand in residential construction as well as softness in the
oil and gas sector. Demand in the Finnish market continued to be sluggish,
except for Southern Finland where growth was supported by ongoing construction
projects.
As demand started to accelerate towards the end of the quarter, we expect
overall demand to continue improving in the second half of the year in Sweden,
Denmark, Europe East and Europe Central, whilst we expect challenging market
conditions to prevail in Finland and Norway.
Ramirent is on a journey of change moving from a product based company to a
solutions and knowledge based company with the ambition to offer a unique
customer experience. We will achieve this by continuing our determined work to
achieve sustainable profitable growth, improve our differentiation developing
complementary services for our customers and enhance our operational
productivity creating a solid foundation for competitive operations also in the
future.”
MARKET OUTLOOK 2015
Ramirent expects market conditions for equipment rental to remain challenging
in Finland in the second half of the 2015. According to a forecast published by
Euroconstruct in June 2015, the Finnish construction market is expected to be
flat in 2015. Demand for renovation is estimated to increase due to ageing
residential stock and government assistance for renovation projects. Weak
market conditions are expected to continue in the new residential construction
sector especially outside the capital city region. Demand for equipment rental
in non-residential construction is supported by start-ups of certain large
commercial and industrial building projects. The new government is planning to
increase infrastructure spending in order to stimulate the stagnant economy in
the second half of 2015. The Confederation of Finnish Industries (EK) expects
full-year industrial investments in the general manufacturing sector as well as
in the energy sector to increase in 2015.
Ramirent expects the demand for equipment rental to remain favourable in Sweden
in 2015, driven by high activity in all construction sectors. According to a
forecast published by Euroconstruct in June 2015, the Swedish construction
market is expected to grow by 5.0% in 2015. The market conditions are strong
especially in many of Sweden's major cities. New residential start-ups will
remain at a high level due to continuous housing shortage in the market.
Non-residential construction is expected to increase supported by growth in
office and commercial building projects. The government's transport
infrastructure plan, approved in 2014, will fuel activity within infrastructure
construction especially in the Stockholm and Gothenburg areas also in the
second half of the year. Due to a continuously expanding and ageing building
stock, renovation is expected to grow in 2015. Demand for equipment rental in
the industrial sector is anticipated to remain fairly stable in Sweden.
Ramirent expects market conditions for equipment rental to remain challenging
in Norway in the second half of 2015 due to macroeconomic uncertainty connected
to the low oil price. According to a forecast published by Euroconstruct in
June 2015, the Norwegian construction market is expected to grow by 2.6% in
2015. Infrastructure construction supported by government stimulus measures
will be the main growth driver fuelled by several road, railway and metro
projects. Residential construction is estimated to remain at the previous
year's level in 2015. Non-residential construction sector is expected to
increase supported by public sector projects. Renovation construction is
expected to increase in 2015. According to an estimate by Statistics Norway,
investments in the oil and gas sector are estimated to decline clearly in 2015.
Ramirent expects market conditions for equipment rental to be balanced in
Denmark in the second half of 2015. According to a forecast published by
Euroconstruct in June 2015, the Danish construction market is expected to
increase by 1.2% in 2015. Demand in the renovation market is expected to soften
clearly while new residential construction is estimated to remain stable backed
by a healthy underlying demand in the major cities. In the second half of 2015,
public investments are expected to increase infrastructure construction and
building activity in the health and education sector. Activity in the
industrial sector is expected to support the demand for equipment rental in the
second half of the year.
Ramirent expects the overall demand in the Baltic equipment rental market to
remain balanced in the second half of 2015. According to a forecast published
by Euroconstruct in June 2015, the total construction market in the Baltics is
expected to decrease by 2.5% in 2015. In Estonia the construction market is
expected to decline by 4% in 2015. The main construction projects will be
located in the capital city region and southern parts of Estonia. The Latvian
construction market is estimated to decline by 6% in 2015. Residential
construction is expected to remain stable, but construction activity in the
non-residential sector will slow down due to the continued economic uncertainty
caused by the Ukrainian crisis. In Lithuania the construction market is
expected to grow by 1% in 2015. Increasing residential construction and high
activity in renovation will be the main growth drivers in the Lithuanian
market. Several EU funded projects are expected to start in the second half of
2015, supporting especially infrastructure and renovation construction in the
Baltics.
Ramirent expects the demand for equipment rental to be modest in Russia in
2015. The low oil price is impacting negatively on the economy and construction
markets. The volatility of the rouble and the Russian financial market hinder
economic growth in Russia. EU and US economic sanctions against Russia due to
the Ukrainian crisis remain in place, creating further uncertainty over the
development of the Russian economy. According to the forecast published by
Euroconstruct in June 2015, the Russian construction market is estimated to
decrease by approximately 2% in 2015. Building construction is estimated to
remain close to the previous year's level supported by large ongoing projects
but infrastructure construction is expected to decline clearly. In Ukraine,
construction activity has slowed down considerably and market conditions are
expected to remain challenging throughout the 2015.
Ramirent expects the overall demand in Europe Central equipment rental markets
to remain favourable in the second half of 2015. According to a forecast
published by Euroconstruct in June 2015, the Polish construction market is
estimated to grow by 9.7% in 2015. Infrastructure construction projects, funded
largely by EU, will be the primary driver of growth in the construction sector.
Market conditions are expected to be favourable in residential construction as
new start-ups are forecasted to increase clearly. Construction activity is
expected to continue to pick up in the non-residential sector supported
especially by construction of industrial buildings. Increasing renovation as
well as high project activity in the power plant and wind power sector is
estimated to support the equipment rental market. In the Czech Republic and
Slovakia, the construction market is expected to grow by 4.3% and by 2.1%
respectively in 2015. Demand for equipment rental is expected to remain strong
especially in the construction sector.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged 6 August,
2015 at 11:00 a.m. Finnish time at Ramirent Group headquarters, (visiting
address: Äyritie 16, 01510 Vantaa).
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Thursday 6 August 2015 at 11:00
a.m. Finnish time (EET) through a live webcast at www.ramirent.com and
conference call. Dial−in numbers are: +358 9 8171 0495 (FI), +46 8 5664 2702
(SE), +44 203 194 0552 (UK) and +1 8 557 161 597 (US). Recording of the webcast
will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR 2015
Ramirent observes a silent period during 21 days prior to the publication of
annual and interim financial results.
Interim report January-September 2015 4 November 2015 at 9:00 a.m
The financial information in this stock exchange release has not been audited.
Vantaa, 6 August 2015
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION
CEO Magnus Rosén
tel. +358 20750 2845, magnus.rosen@ramirent.com
CFO and EVP, Corporate Functions Jonas Söderkvist
tel. +358 20 750 3248, jonas.soderkvist@ramirent.com
SVP, Marketing, Communications and IR Franciska Janzon
tel. +358 20 750 2859, franciska.janzon@ramirent.com
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.ramirent.com
Ramirent is a leading rental equipment group combining the best equipment,
services and know-how into rental solutions that simplify customer's business.
Ramirent serves a broad range of customer sectors including construction,
industry, services, the public sector and households. Ramirent focuses on the
Baltic Rim with operations in the Nordic countries and in Central and Eastern
Europe. In 2014, Ramirent Group sales totalled EUR 614 million. The Group has
2,682 employees in 295 customer centres in 10 countries. Ramirent is listed on
the NASDAQ Helsinki (RMR1V). Ramirent - More Than Machines™.
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