2015-05-07 08:00:01 CEST
2015-05-07 08:00:06 CEST
REGULATED INFORMATION
Ramirent - Interim report (Q1 and Q3)
RAMIRENT’S INTERIM REPORT JANUARY–MARCH 2015: SALES GROWTH FROM INCREASING SERVICE BUSINESS
RAMIRENT PLC INTERIM REPORT 7 MAY 2015 at 9:00
Vantaa, Finland, 2015-05-07 08:00 CEST (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
PERFORMANCE JANUARY-MARCH 2015
• Net sales EUR 140.6 (137.5) million, up by 2.2% or by 5.4% at comparable
exchange rates
• EBITDA EUR 28.6 (31.7) million or 20.3% (23.0%) of net sales
• EBITA EUR 4.1 (7.1) million or 2.9% (5.2%) of net sales
• Result for the period EUR −0.0 (2.6) million and EPS EUR −0.00 (0.02)
• Return on invested capital (ROI) on a rolling 12 months basis was 12.9%
(13.9%)
• Gross capital expenditure EUR 18.1 (23.4) million
• Cash flow after investments EUR 0.9 (−5.1) million
• Net debt EUR 226.2 (212.0) million
• Net debt to EBITDA ratio 1.4x (1.2x)
RAMIRENT OUTLOOK FOR FULL YEAR 2015 UNCHANGED
Ramirent expects the market picture for 2015 to remain mixed, with challenging
market conditions in especially 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
1-3/15 1-3/14 Change 1-12/1
4
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(MEUR)
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Net sales 140.6 137.5 2.2% 613.5
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EBITDA 28.6 31.7 −9.7% 167.9
--------------------------------------------------------------------------------
% of net sales 20.3% 23.0% 27.4%
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EBITA excluding non-recurring items 4.1 7.1 −42.0% 71.5
--------------------------------------------------------------------------------
% of net sales 2.9% 5.2% 11.7%
--------------------------------------------------------------------------------
EBITA1) 4.1 7.1 −42.0% 65.8
--------------------------------------------------------------------------------
% of net sales 2.9% 5.2% 10.7%
--------------------------------------------------------------------------------
EBIT 2.0 5.4 −63.5% 58.1
--------------------------------------------------------------------------------
% of net sales 1.4% 3.9% 9.5%
--------------------------------------------------------------------------------
EBT −0.2 3.2 −106.7 42.5
%
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% of net sales −0.2% 2.3% 6.9%
--------------------------------------------------------------------------------
Result for the period attributable to the owners −0.0 2.6 −101.0 32.6
of the parent company %
--------------------------------------------------------------------------------
Earnings per share (EPS), (basic and diluted), −0.00 0.02 −101.0 0.30
EUR %
--------------------------------------------------------------------------------
Gross capital expenditure on non-current assets 18.1 23.4 −22.7% 144.6
--------------------------------------------------------------------------------
Gross capital expenditure, % of net sales 12.9% 17.0% 23.6%
--------------------------------------------------------------------------------
Cash flow after investments 0.9 −5.1 118.0% 21.8
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Invested capital at the end of period 520.3 545.1 −4.5% 555.2
--------------------------------------------------------------------------------
Return on invested capital (ROI),%2) 12.9% 13.9% 12.2%
--------------------------------------------------------------------------------
Return on equity (ROE),%2) 9.7% 13.6% 9.4%
--------------------------------------------------------------------------------
Net debt 226.2 212.0 6.7% 227.1
--------------------------------------------------------------------------------
Net debt to EBITDA ratio2) 1.4x 1.2x 15.7% 1.4x
--------------------------------------------------------------------------------
Gearing,% 77.7% 64.2% 69.9%
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Equity ratio,% 38.6% 43.8% 43.7%
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Personnel at end of period 2,608 2,529 3.1% 2,576
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1) EBITA is operating profit before amortisation and impairment of intangible
assets.
2) Rolling 12 months
COMMENTS FROM CEO MAGNUS ROSÉN:
“Despite a tough market in two of our key countries, Group net sales increased
by 5.4% at comparable exchange rates in the first-quarter. However,
first-quarter EBITA decreased to EUR 4.1 (7.1) million or 2.9% (5.2%) of net
sales. EBITA margin was affected negatively by a higher share of service sales,
start-up costs in large Solutions projects, reorganisation of maintenance and
repair operations, as well as price pressure especially in the Finnish and
Norwegian equipment rental markets. Increasing service business will be a key
to generate sustainable profitable growth. Return on invested capital was 12.9%
and return on equity was 9.7% compared to the financial target of 18%. Our
full-year outlook for 2015 remains unchanged.
We are not satisfied with the current profitability level. In the first quarter
we continued to implement our efficiency programme developing our common
operational model and processes for the whole Group. Our efficiency actions
will continue during 2015 and the margin improvement stemming from these
actions is expected to materialise mainly in 2016 and onwards.
Sales growth was strongest in Sweden supported by demand from residential and
infrastructure construction. In Finland, despite slow underlying demand in the
construction and industry sectors, net sales grew based on good activity in
small and mid-sized projects in Southern Finland, but increased price pressure
and increased handling costs burdened profitability. In Norway, slow underlying
demand in building construction affected net sales negatively and restructuring
of the operations to improve profitability continued. In addition, the decline
in oil prices impacted negatively on the demand from the Norwegian oil & gas
sector. In Denmark, first-quarter market activity remained stable but a tough
competitive environment and an unfavourable sales mix impacted negatively on
profitability. In the Baltics, our strong performance continued driven by
favourable demand among small and medium sized customers. In Europe Central,
EBITA result improved compared to previous year due to favourable demand in
Polish industrial projects as well as strong sales growth in the Czech Republic
and Slovakian operations. In Fortrent markets in Russia and Ukraine, high
political and macroeconomic uncertainty continued.
In the quarter, we continued to develop our offering of solutions and value
adding services according to our promise of delivering More Than Machines.
During the first quarter, we received a number of new demanding total rental
solutions projects in line with our strategy. The largest contract was signed
with AMF Fastigheter to provide a total rental solution for machines and
related services during the implementation of Urban Escape project which
comprises offices, hotels, commercial premises and other facilities in
Stockholm. The contract will run until 2018 and the order is worth
approximately EUR 40 million for deliveries to AMF Fastigheter as well as to
other cooperation partners.
We are committed to achieving sustainable profitable growth by pursuing our
objective Customer First through the NextRamirent agenda; by maintaining
agility in business through a diversified business portfolio of products,
customers, competences and geographies and by building One Company to realise
scale benefits and synergies. Based on our continued solid financial position,
we will also continue pursuing outsourcing opportunities and acquisitions.”
MARKET OUTLOOK 2015
Ramirent expects market conditions for equipment rental to be challenging in
Finland in 2015. According to a forecast published by Confederation of Finnish
Construction Industries (RT) in March 2015, the Finnish construction market is
expected to decrease by 0.5% 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 the non-residential construction is expected to
recover supported by start-ups of certain large commercial and industrial
building projects. The Confederation of Finnish Industries (EK) expects
industrial investments to increase in the general manufacturing sector as well
as in the energy sector in 2015.
Ramirent expects the demand for equipment rental to improve in Sweden in 2015,
driven by increasing activity in all construction sectors. According to a
forecast published by Swedish Construction Federation (BI) in March 2015, the
Swedish construction market is expected to grow by 8.0% in 2015. New
residential start-ups will remain at a high level due to continuous housing
shortage especially in larger cities. Non-residential construction is expected
to increase supported by growth in office and commercial building. The
government's transport infrastructure plan, approved in 2014, will fuel
activity within infrastructure construction especially in the Stockholm and
Gothenburg areas. 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 be challenging in
Norway in 2015 due to increased macroeconomic uncertainty combined with the
decline in oil prices. According to a forecast published by Prognosesenteret in
March 2015, the Norwegian construction market is expected to grow by 3.7% in
2015. The market situation in the residential sector has stabilised and
construction is estimated to remain at the previous year's level in 2015. New
construction and renovation in the non-residential construction sector is
expected to increase supported mainly by public sector projects. Infrastructure
construction supported by government stimulus measures will be the main growth
driver fuelled by several road, railway and metro projects. According to the
Norwegian Oil and Gas association, investments in the oil and gas sector are
estimated to decline by 11% in 2015.
Ramirent expects market conditions for equipment rental to be balanced in
Denmark in 2015. According to a forecast published by Danish Construction
Industry (DB) in February 2015, the Danish construction market is expected to
decline by 1.9% in 2015. Demand in the renovation market is expected to soften
clearly this year.
New residential construction is estimated to remain stable backed by a healthy
underlying demand in the major cities. Market activity in non-residential
construction is expected to improve slightly mainly due to increasing
construction of buildings for education and health. Several transport
infrastructure projects are expected to support the market situation.
Ramirent expects the overall demand in the Baltic equipment rental market to
remain balanced in 2015. According to a forecast published by Euroconstruct in
November 2014, the total construction market in the Baltics is expected to
decline slightly 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 Estonia. The Latvian construction market is
also estimated to decline by 4%. Residential construction is expected to
recover, but activity in the non-residential sector will slow down in 2015. 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 Lithuania. EU funded projects are expected to fuel
infrastructure construction and renovation in the Baltics during the second
half of the year. The decline in the oil price is expected to have a negative
impact on energy sector projects.
Ramirent expects the demand for equipment rental to be modest in Russia in
2015. The decline in the oil price has a negative impact on the economy and
construction activity in Russia. The volatility of the rouble and the Russian
financial market hinder economic growth in Russia. The prolongation and
expansion of the Ukrainian crisis is still a significant near-term risk.
According to the forecast published by Euroconstruct in November 2014, the
Russian construction market will 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 improve in 2015. In 2015, the Polish construction market is estimated to
grow by 7.1% according to a forecast published by Euroconstruct in November
2014. 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 the 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 by especially construction
of industrial buildings. The market situation in renovation is estimated to
remain stable. High project activity in the energy sector and other industrial
sectors is expected to support the demand for equipment rental. In the Czech
Republic and Slovakia, the construction market is expected to grow by 2.5% and
by 1.8% respectively in 2015.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged 7 May, 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 7 May 2015 at 11:00
a.m. Finnish time (EET) through a live webcast at www.ramirent.com and
conference call. Dial−in numbers are: (FI) +358981710495, (UK) +442031940552,
(SE) +46856642702 and (US) +18557161597. 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-June 2015 6 August 2015 at 9:00 a.m
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, 7 May 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 - MORE THAN MACHINES. We are a leading rental equipment group
combining the best equipment, services and know-how into rental solutions that
simplify customer 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. Ramirent is the market leader in seven of the
ten countries where it operates. In 2014, Ramirent Group sales totalled EUR 614
million. The Group has 2,600 employees in 301 customer centres in 10 countries.
Ramirent is listed on the NASDAQ Helsinki Ltd.
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