2014-11-06 08:00:01 CET
2014-11-06 08:00:05 CET
BIRTINGARSKYLDAR UPPLÝSNINGAR
Ramirent - Interim report (Q1 and Q3)
RAMIRENT’S INTERIM REPORT JANUARY–SEPTEMBER 2014: RESTRUCTURING MEASURES BEARING FRUIT, MIXED MARKET PICTURE REMAINS
RAMIRENT PLC COMPANY ANNOUNCEMENT 6 NOVEMBER 2014
at 9:00
Vantaa, Finland, 2014-11-06 08:00 CET (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
JULY-SEPTEMBER 2014 HIGHLIGHTS
- Ramirent net sales EUR 163.6 (166.2) million, down by 1.6%; adjusted for
divested operations, net sales were up by 1.9% at comparable exchange rates
- EBITA1) EUR 28.0 (25.9) million or 17.1% (15.6%) of net sales
- EBITA excl. non-recurring items and divested operations2,3) EUR 29.9 (28.7)
or 18.3% (17.5%)
- Profit for the period EUR 18.4 (16.8) million and EPS EUR 0.17 (0.16)
JANUARY-SEPTEMBER 2014 HIGHLIGHTS
- Ramirent net sales EUR 452.9 (479.8) million, down by 5.6%; adjusted for
transferred or divested operations, net sales were down by 0.3% at comparable
exchange rates
- EBITA1) EUR 51.3 (71.2) million or 11.3% (14.8%) of net sales
- EBITA excl. non-recurring items and adjusted for transferred or divested
operations2,3) EUR 53.2 (62.7) million or 11.7% (13.3%) of net sales
- Profit for the period EUR 28.1 (40.1) million and EPS EUR 0.26 (0.37)
- Gross capital expenditure EUR 125.6 (91.9) million
- Cash flow after investments EUR −10.7 (48.2) million
- Net debt EUR 259.7 (230.3) million
- Net debt to EBITDA ratio 1.5x (1.1x)
RAMIRENT OUTLOOK FOR 2014 UNCHANGED
The economic growth in 2014 is expected to be modest and construction market
demand remains mixed in our core markets. Ramirent will maintain strict cost
control and, for 2014, capital expenditure is expected to be around the same
level as in 2013. The strong financial position will enable the Group to
continue to address profitable growth opportunities.
KEY FIGURES
KEY FIGURES (MEUR) 7-9/14 7-9/13 Change 1-9/14 1-9/13 Change 1-12/1
3
--------------------------------------------------------------------------------
Net sales 163.6 166.2 −1.6% 452.9 479.8 −5.6% 647.3
--------------------------------------------------------------------------------
EBITDA 53.9 52.0 3.8% 127.8 148.8 −14.1% 195.1
--------------------------------------------------------------------------------
% of net sales 33.0% 31.3% 28.2% 31.0% 30.1%
--------------------------------------------------------------------------------
EBITA 1) 28.0 25.9 8.0% 51.3 71.2 −27.9% 92.1
--------------------------------------------------------------------------------
% of net sales 17.1% 15.6% 11.3% 14.8% 14.2%
--------------------------------------------------------------------------------
EBIT 26.0 24.3 7.0% 45.6 63.3 −27.9% 82.3
--------------------------------------------------------------------------------
% of net sales 15.9% 14.6% 10.1% 13.2% 12.7%
--------------------------------------------------------------------------------
EBT 23.7 20.6 15.0% 36.0 51.0 −29.4% 63.9
--------------------------------------------------------------------------------
% of net sales 14.5% 12.4% 8.0% 10.6% 9.9%
--------------------------------------------------------------------------------
Profit for the period 18.4 16.8 9.6% 28.1 40.1 −29.9% 54.0
attributable to the
owners of the parent
company
--------------------------------------------------------------------------------
Earnings per share 0.17 0.16 9.6% 0.26 0.37 −29.9% 0.50
(EPS), (basic and
diluted), EUR
--------------------------------------------------------------------------------
Gross capital 23.8 29.5 −19.4% 125.6 91.9 36.6% 125.8
expenditure on
non-current assets
--------------------------------------------------------------------------------
Gross capital 14.6% 17.8% 27.7% 19.2% 19.4%
expenditure, % of net
sales
--------------------------------------------------------------------------------
Cash flow after 13.7 34.4 −60.2% −10.7 48.2 −122.3 73.4
investments %
--------------------------------------------------------------------------------
Invested capital at the 605.2 604.1 0.2% 579.8
end of period
--------------------------------------------------------------------------------
Return on invested 12.3% 17.5% 16.5%
capital (ROI),% 4)
--------------------------------------------------------------------------------
Return on equity (ROE),% 12.0% 16.9% 14.7%
4)
--------------------------------------------------------------------------------
Net debt 259.7 230.3 12.7% 206.9
--------------------------------------------------------------------------------
Net debt to EBITDA ratio 1.5x 1.1x 32.9% 1.1x
4)
--------------------------------------------------------------------------------
Gearing,% 75.9% 63.9% 55.8%
--------------------------------------------------------------------------------
Equity ratio,% 42.8% 45.2% 48.9%
--------------------------------------------------------------------------------
Personnel at end of 2,621 2 597 0.9% 2 589
period 5)
--------------------------------------------------------------------------------
1) EBITA is operating profit before amortisation and impairment of intangible
assets.
2) Non-recurring items included a EUR 1.9 million restructuring provision
booked in the third quarter of 2014.
3) Non-recurring items in the comparison period included a non-taxable capital
gain of EUR 10.1 million from the formation of Fortrent in the first quarter
2013, a EUR 1.9 million loss from disposal of Hungary as well as a EUR 1.5
million restructuring provision in Denmark in the third quarter of 2013.
Transferred and divested operations included Russia, Ukraine and Hungary.
4) Rolling 12 months
5) As of first quarter 2014, reporting of number of personnel was changed to
FTE (full-time equivalent) which indicates the number of employees calculated
as full time workload for each person employed and actually present in the
company. Comparative information has been changed accordingly.
MAGNUS ROSÉN, RAMIRENT CEO:
“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. We intensified cost control in all our markets during the
quarter and 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. In Sweden, increased demand supported net sales as several
projects started. In Finland, net sales were supported by recent acquisitions
although overall construction activity remains subdued and we see further risk
on the down-side. In Norway, modest demand for equipment rental continues from
residential construction. In Denmark, demand was supported by construction in
the capital city region and demand from the public sector. In the Baltics, our
operations developed favourably backed by stable market conditions. In Europe
Central, demand for equipment rental improved in Poland and the Czech Republic,
while market activity is low in Slovakia.
In the third quarter, we carried out a number of actions to adjust the cost
base in low-performing segments, especially in the Swedish and Norwegian
operations. In Norway, a EUR 1.9 million restructuring provision was booked in
the third quarter. In Denmark, activities to streamline operations and realise
synergies cross-border with Sweden continued and in Finland flexibility was
added by outsourcing non-core yard and storage operations. Cost reductions will
continue also in the fourth quarter and we expect the full effects of these
cost saving actions to materialise in 2015.
An important new agreement during the quarter was the signing of a three-year
rental agreement with Skanska's machinery department in Sweden. After the end
of the quarter, we renewed the cooperation agreement with Veidekke in Norway
for the next three years. In Finland, construction company Hartela outsourced
their tower cranes fleet to Ramirent and signed a five-year rental agreement.
We continue to work to improve the performance and future-readiness of our
business. Our efficiency programme is progressing according to plan. In the
quarter, we continued to develop our organisation to efficiently cater for the
specific needs of customers renting over-the-counter and customers to whom we
deliver integrated solutions to. This helps us in serving our customers even
better and it further differentiates us from our competitors. Other key
measures comprise the development of the common Ramirent platform, allowing us
to realise synergies of scale and to better manage pricing and fleet
utilisation rates.
Based on our continued solid financial position, we are well positioned to
continue pursuing outsourcing opportunities and acquisitions.”
MARKET OUTLOOK FOR 2014
According to a forecast published by Confederation of Finnish Construction
Industries (RT) in October 2014, the Finnish construction market is expected to
decrease by 2.0% in 2014. New residential start-ups will decline considerably
compared to the previous year. Demand for non-residential construction is
expected to remain stable supported by healthy activity in public sector
building projects. Renovation is forecasted to increase as a result of
government stimulus measures and increasing need of renovations. The
Confederation of Finnish Industries (EK) expects industrial investments to
increase slightly in 2014, supported by investments in the energy sector.
According to a forecast published by European Rental Association (ERA) in
October 2014, the Finnish equipment rental market is expected to decrease by
1.6% in 2014.
According to a forecast published by Swedish Construction Federation (BI) in
October 2014, the Swedish construction market is expected to increase by 11.0%
in 2014. Forecasts predict residential construction to increase significantly
compared to the previous year. Non-residential construction is expected to grow
markedly in 2014. Construction activity within infrastructure construction is
forecasted to grow slightly and mainly in the Stockholm and Gothenburg areas.
Due to a continuously expanding and ageing building stock, renovation is
expected to grow also in 2014. According to a forecast published by ERA in
October 2014, the Swedish equipment rental market is expected to grow by 1.0%
in 2014.
According to a forecast published by Prognosesenteret in October 2014, the
Norwegian construction market is expected to grow by 1.0% in 2014. In 2014, new
residential construction is forecasted to decline while infrastructure
construction is to remain active supported by government grants to railway and
metro projects. Market activity in renovation is expected to remain stable in
all construction sectors. According to the Norwegian Oil and Gas association,
investments in the oil and gas sector are forecasted to be close to last year's
level in 2014. Slow market activity in the residential construction sector as
well as overcapacity in the equipment rental market is expected to impact
negatively on the rental market in the fourth quarter. According to a forecast
published by ERA in October 2014, the Norwegian equipment rental market is
expected to grow by 2.0% in 2014.
According to a forecast published by Danish Construction Industry (DB) in
October 2014, the Danish construction market is expected to grow by 2.5% in
2014. Volumes in residential construction are estimated to pick up, however
from low levels. Market activity in non-residential construction is expected to
improve mainly due to increasing construction of buildings for education and
health as well as a gradual upturn in the general economic situation.
Renovation is expected to increase supported by healthy demand from all
construction sectors. Infrastructure construction is forecasted to grow fuelled
by several new transport projects and energy investments. According to a
forecast published by ERA in October 2014, the Danish equipment rental market
is expected to grow by 0.7% in 2014.
According to a forecast published by Euroconstruct in June 2014, the
construction market in the Baltic States is expected to be slightly below last
year's level. The construction market is estimated to increase in Lithuania by
3% and to decrease in Latvia by 2% and in Estonia by 7%. Residential
construction in the Baltic States is estimated to grow supported by new
building start-ups and improving consumer confidence. Non-residential
construction is expected to recover in Latvia and Lithuania during 2014. The
market in infrastructure construction is at a lower level due to a transition
period in EU funding. High activity in the energy sector will support the
Baltic equipment rental markets in 2014.
A significant near-term risk is the prolongation and expansion of the Ukrainian
crisis. According to a forecast published by Euroconstruct in June 2014, the
Russian construction market is projected to decrease at some 1% in 2014. In
Russia, residential construction is estimated to remain close to last year's
level and non-residential construction is forecasted to decline. The market
situation remains challenging in Ukraine.
In 2014, the Polish construction market is estimated to grow by 4.2% according
to a forecast published by Euroconstruct in June 2014. Construction activity is
expected to pick-up in Poland especially within residential and infrastructure
construction. However, several large projects are being completed and there is
a lack of new large projects starting in the short-term. The market situation
in renovation is estimated to remain stable. New power plant and shale gas
projects in the energy sector support demand in 2014. According to a forecast
published by ERA in October 2014, the Polish equipment rental market is
expected to grow by 1.5% in 2014. In the Czech Republic, the construction
market is expected to decrease by 3.8% this year. In Slovakia the constructionvolume is estimated to increase by 1.7% supported by residential and
infrastructure construction.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Thursday 6
November 2014 at 11:00 a.m. Finnish time at the Ramirent Group head office
located at Äyritie 16, Vantaa, Finland.
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Thursday 6 November 2014 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 81710 465 (FI), +46 8 5199 9355
(SE), +44 2 0319 4 0550 (UK) and +1 8 5526 92605 (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.
Financial statements 2014 12 February 2015 at
9:00 a.m
Annual report 2014 27 February 2015
Annual General Meeting 25 March 2015
Interim report January-March 2015 7 May 2015 at 9:00 a.m
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, 6 November 2014
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 More Than Machines(TM). We are a leading rental equipment group
combining the best equipment, services and know-how into rental solutions that
simplify customer business. We serve a broad range of customers, including
construction and process industries, services, the public sector and
households. In 2013, the Group's net sales totalled EUR 647 million. The Group
has 2,620 employees at 302 customer centres in 10 countries in the Nordic
countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ
OMX Helsinki Ltd.
© 2024 Nasdaq, Inc. All Rights Reserved |