2014-07-29 08:00:01 CEST
2014-07-29 08:00:07 CEST
REGULATED INFORMATION
Ramirent - Interim report (Q1 and Q3)
RAMIRENT’S INTERIM REPORT JANUARY–JUNE 2014: NEW STRATEGIC ACQUISITIONS IN SLOW SECOND QUARTER
RAMIRENT PLC COMPANY ANNOUNCEMENT 29 JULY 2014 at 9:00
Vantaa, Finland, 2014-07-29 08:00 CEST (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
APRIL-JUNE 2014 HIGHLIGHTS
- Ramirent net sales EUR 151.8 (160.8) million, down by 5.6% or by 2.1% at
comparable exchange rates
- EBITA1) EUR 16.2 (22.7) million or 10.7% (14.1%) of net sales
- Profit for the period EUR 7.1 (12.3) million and EPS EUR 0.07 (0.11)
JANUARY-JUNE 2014 HIGHLIGHTS
- Ramirent net sales EUR 289.3 (313.6) million, down by 7.7%; adjusted for
transferred or divested operations, net sales were down by 1.5% at comparable
exchange rates
- EBITA excl. non-recurring items and adjusted for transferred and divested
operations2) EUR 23.3 (34.0) million or 8.0% (11.1%) of net sales
- Profit for the period EUR 9.7 (23.3) million and EPS EUR 0.09 (0.22)
- Gross capital expenditure EUR 101.8 (62.4) million
- Cash flow after investments EUR −26.6 (13.8) million
- Net debt EUR 273.4 (264.2) million
- Net debt to EBITDA ratio 1.6x (1.2x)
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) 4-6/14 4-6/13 Change 1-6/14 1-6/13 Change 1-12/1
3
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Net sales 151.8 160.8 −5.6% 289.3 313.6 −7.7% 647.3
--------------------------------------------------------------------------------
EBITDA 42.2 48.8 −13.4% 73.9 96.8 −23.7% 195.1
--------------------------------------------------------------------------------
% of net sales 27.8% 30.3% 25.5% 30.9% 30.1%
--------------------------------------------------------------------------------
EBITA 1) 16.2 22.7 −28.8% 23.3 45.3 −48.5% 92.1
--------------------------------------------------------------------------------
% of net sales 10.7% 14.1% 8.0% 14.4% 14.2%
--------------------------------------------------------------------------------
EBIT 14.2 21.0 −32.2% 19.6 39.0 −49.7% 82.3
--------------------------------------------------------------------------------
% of net sales 9.4% 13.0% 6.8% 12.4% 12.7%
--------------------------------------------------------------------------------
EBT 9.1 15.2 −40.0% 12.4 30.4 −59.4% 63.9
--------------------------------------------------------------------------------
% of net sales 6.0% 9.5% 4.3% 9.7% 9.9%
--------------------------------------------------------------------------------
Profit for the period 7.1 12.3 −41.9% 9.7 23.3 −58.4% 54.0
attributable to the
owners of the parent
company
--------------------------------------------------------------------------------
Earnings per share 0.07 0.11 −41.9% 0.09 0.22 −58.4% 0.50
(EPS), (basic and
diluted), EUR
--------------------------------------------------------------------------------
Gross capital 78.3 30.0 161.2% 101.8 62.4 63.1% 125.8
expenditure on
non-current assets
--------------------------------------------------------------------------------
Gross capital 51.6% 18.7% 35.2% 19.9% 19.4%
expenditure, % of net
sales
--------------------------------------------------------------------------------
Cash flow after −21.5 −5.2 n/a −26.6 13.8 −293.3 73.4
investments %
--------------------------------------------------------------------------------
Invested capital at the 610.5 611.3 −0.1% 579.8
end of period
--------------------------------------------------------------------------------
Return on invested 11.9% 19.2% 16.5%
capital (ROI),% 3)
--------------------------------------------------------------------------------
Return on equity (ROE),% 12.1% 19.3% 14.7%
3)
--------------------------------------------------------------------------------
Net debt 273.4 264.2 3.5% 206.9
--------------------------------------------------------------------------------
Net debt to EBITDA ratio 1.6x 1.2x 28.4% 1.1x
3)
--------------------------------------------------------------------------------
Gearing,% 84.2% 76.8% 55.8%
--------------------------------------------------------------------------------
Equity ratio,% 40.3% 43.1% 48.9%
--------------------------------------------------------------------------------
Personnel at end of 2,651 2,781 −4.7% 2,561
period 4)
--------------------------------------------------------------------------------
1) EBITA is operating profit before amortisation and impairment of intangible
assets.
2) The non-recurring items include a non-taxable capital gain of EUR 10.1
million from the formation of Fortrent in the first quarter 2013. Transferred
and divested operations included Russia, Ukraine and Hungary.
3) Rolling 12 months
4) 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:
“Slower than expected sales of equipment rental continued in many of our
markets in the second quarter 2014. Second-quarter net sales decreased by 2.1%
at comparable exchange rates. Second- quarter EBITA margin was below the
previous year level at an unsatisfactory 10.7% (14.1%).
Lower than expected demand and slow progress in the start-up of new projects
impacted negatively on sales in Sweden. Our profitability in Norway was
impaired by low demand from residential construction, decreased fleet
utilisation and increased pricing pressure. In Finland, acquisitions and
recovering market demand supported sales growth. Demand picked up in the Baltic
States and Poland and we have relocated fleet capacity to these markets during
the first half of the year. Softness in construction activity in Denmark, the
Czech Republic and Slovakia continues to burden our operations in these
countries. Cost reductions have and will be further reinforced to adapt the
cost base to market demand in all low-performing segments. In both Sweden and
Norway, cost reductions were insufficient to mitigate the impact on
profitability from lower demand. In Denmark, activities to streamline
operations and realise synergies with Sweden continue.
In the second quarter we took important steps in building on our capabilities
to deliver More Than Machines(TM). The acquisition of a majority stake in
Safety Solutions Jonsereds AB supports our growing focus on safety and the
acquisition of DCC (Dry Construction Concept) business reinforces our
capabilities in the growing business sector of weather protection. We also
strengthened our offer of services for industrial customers by concluding an
outsourcing agreement with Empower for significant parts of their equipment
fleet in Finland.
In July, we signed a contract with German-based Zeppelin Rental to form a joint
venture to serve the Fehmarnbelt tunnel construction project, subject to
approval from relevant authorities. The partnership will enhance our position
as a potential supplier for the project and by combining our complementary
capacities we can present a unique offer for the entire lifecycle of the
project on both the Danish and the German side.
We will continue to pursue efficiency improvements to realise our targeted
Group EBITA level of 17% by the end of 2016. Our key measures comprise
developing the common Ramirent platform, integrated solutions, pricing
management, optimising customer centre network, improving fleet utilisation
rates and the governance of sourcing operations.
Our industry is transforming with rental developing into two complementary
business models, rental over-the-counter and provision of integrated solutions,
creating an opportunity for Ramirent to leverage its know-how of both. As part
of our efficiency measures, we are focusing on improving our competitive
position and developing our offer to efficiently fulfil needs of our customers'
and earn their trust as a partner in both types of business.
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 Euroconstruct in June 2014, the Finnish
construction market is expected to grow by 0.8% in 2014. Residential
construction is estimated to decline during this year as new residential
start-ups will decline considerably compared to the previous year. Activity in
non-residential construction is expected to pick up supported by several large
upcoming construction projects. Renovation is forecasted to increase as a
result of government stimulus measures and increasing need of renovations.
Confederation of Finnish Industries (EK) expects industrial investments to
increase slightly this year, supported by higher investment activity in the
energy sector.
According to a forecast published by Euroconstruct in June 2014, the Swedish
construction market is expected to increase by 4.4% in 2014. Residential
construction is estimated to increase markedly compared to the previous year.
Non-residential construction is expected to grow slightly in 2014. The
government's new transport infrastructure plan will fuel the construction
activity in railway and road construction, especially in the Stockholm and
Gothenburg areas. Due to a continuously expanding and ageing building stock,
renovation will continue to grow also in 2014. Market activity in several
industrial sectors is expected to develop positively.
According to a forecast published by Euroconstruct in June 2014, the Norwegian
construction market is expected to grow by 0.4% in 2014. New residential
construction will decline clearly due to the general uncertainty in the sector.
Infrastructure construction is going to remain active mainly due to a major
leap in 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. The slow market
activity in the residential construction sector as well as overcapacity in the
equipment rental market will impact negatively on the rental market in the
second half of the year.
According to a forecast published by Euroconstruct in June 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 infrastructure projects and
energy investments.
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% according to
Euroconstruct. 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 will weaken markedly due
to a transition period in EU funding. The overall demand for equipment rental
in the construction sector is anticipated to remain at a healthy level. High
activity in the energy sector will support the Baltic equipment rental markets
in 2014.
Significant risks include the expansion of the Ukrainian crisis and severe
economic sanctions implemented by the EU. According to a forecast published by
Euroconstruct in June 2014, 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 as non-residential construction is
forecasted to decline about 5% in 2014. However, there are a lot of potential
shopping centre projects coming to the market. The market situation is likely
to remain challenging in Ukraine.
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.
In 2014, the Polish construction market is estimated to grow by 4.2% according
to a forecast published by Euroconstruct in June 2014. New power plant projects
in the energy sector will support demand in 2014. In the Czech Republic, the
construction market is expected to decrease by 3.8% this year. The Slovakian
construction market is forecasted to recover supported by residential and
infrastructure construction. In 2014, the construction market is expected to
increase by 1.7% in Slovakia.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Tuesday 29
July 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 Tuesday 29 July 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 2014
Ramirent observes a silent period during 21 days prior to the publication of
annual and interim financial results.
Interim report January-September 6 November 2014 at 9:00 a.m
The financial information in this stock exchange release has not been audited.
Vantaa, 29 July 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 2,650 employees at 301 customer centres in 10 countries in the Nordic
countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ
OMX Helsinki Ltd.
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