2015-02-12 08:00:01 CET
2015-02-12 08:00:06 CET
REGULATED INFORMATION
Ramirent - Company Announcement
RAMIRENT’S FINANCIAL STATEMENTS BULLETIN FOR 2014: ADVANCING OPERATIONAL IMPROVEMENT AGENDA IN MIXED MARKET ENVIRONMENT
RAMIRENT PLC COMPANY ANNOUNCEMENT 12 FEBRUARY 2015 at
9:00
Vantaa, Finland, 2015-02-12 08:00 CET (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
JANUARY-DECEMBER 2014 HIGHLIGHTS
- Net sales EUR 613.5 (647.3) million, down by 5.2%; adjusted for transferred
or divested operations, net sales were down by 0.6% at comparable exchange
rates
- EBITA EUR 65.8 (92.1) million or 10.7% (14.2%) of net sales
- EBITA excluding non-recurring items1) and adjusted for transferred or
divested operations EUR 71.5 (83.6) million or 11.7% (13.1%) of net sales
- The non-recurring items1) include restructuring costs and asset write-downs
of EUR −5.7 (8.5) million
- Profit for the period EUR 32.6 (54.0) million and EPS EUR 0.30 (0.50)
- Gross capital expenditure EUR 144.6 (125.8) million
- Cash flow after investments EUR 21.8 (73.4) million
- Net debt EUR 227.1 (206.9) million
- Net debt to EBITDA ratio 1.4x (1.1x)
OCTOBER-DECEMBER 2014 HIGHLIGHTS
- Net sales EUR 160.7 (167.5) million, down by 4.1% or by 1.6% at comparable
exchange rates
- EBITA EUR 14.5 (20.9) million or 9.0% (12.5%) of net sales
- EBITA excluding non-recurring items EUR 18.2 (20.9) or 11.4% (12.5%) of net
sales
- The non-recurring items 1) include restructuring costs and asset write-downs
of EUR −3.7 (0.0) million
- Profit for the period EUR 4.5 (13.9) million and EPS EUR 0.04 (0.13)
- Cash flow after investments EUR 32.6 (25.2) million
1) Non-recurring items include restructuring costs of EUR 1.9 million in the
third quarter 2014 and EUR 3.7 million of restructuring costs and asset
write-downs in the fourth quarter 2014. 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 EUR 1.5 million restructuring costs in Denmark in the third quarter of 2013.
RAMIRENT OUTLOOK FOR 2015
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 10-12/ 10-12/ Change 1-12/1 1-12/1 Change
14 13 4 3
--------------------------------------------------------------------------------
(MEUR)
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Net sales 160.7 167.5 −4.1% 613.5 647.3 −5.2%
--------------------------------------------------------------------------------
EBITDA 40.0 46.2 −13.4% 167.9 195.1 −13.9%
--------------------------------------------------------------------------------
% of net sales 24.9% 27.6% 27.4% 30.1%
--------------------------------------------------------------------------------
EBITA excluding non-recurring 18.2 20.9 −12.6% 71.5 83.6 −14.5%
items
--------------------------------------------------------------------------------
% of net sales 11.4% 12.5% 11.7% 13.1%
--------------------------------------------------------------------------------
EBITA 1) 14.5 20.9 −30.5% 65.8 92.1 −28.5%
--------------------------------------------------------------------------------
% of net sales 9.0% 12.5% 10.7% 14.2%
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EBIT 12.5 19.0 −34.0% 58.1 82.3 −29.3%
--------------------------------------------------------------------------------
% of net sales 7.8% 11.3% 9.5% 12.7%
--------------------------------------------------------------------------------
EBT 6.4 12.8 −50.0% 42.5 63.9 −33.5%
--------------------------------------------------------------------------------
% of net sales 4.0% 7.7% 6.9% 9.9%
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Profit for the period 4.5 13.9 −67.7% 32.6 54.0 −39.6%
attributable to the owners of
the parent company
--------------------------------------------------------------------------------
Earnings per share (EPS), (basic 0.04 0.13 −67.7% 0.30 0.50 −39.6%
and diluted), EUR
--------------------------------------------------------------------------------
Gross capital expenditure on 19.0 33.8 −44.0% 144.6 125.8 14.9%
non-current assets
--------------------------------------------------------------------------------
Gross capital expenditure, % of 11.8% 20.2% 23.6% 19.4%
net sales
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Cash flow after investments 32.6 25.2 29.2% 21.8 73.4 −70.2%
--------------------------------------------------------------------------------
Invested capital at the end of 555.2 579.8 −4.2%
period
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Return on invested capital 12.2% 16.5%
(ROI),% 2)
--------------------------------------------------------------------------------
Return on equity (ROE),% 2) 9.4% 14.7%
--------------------------------------------------------------------------------
Net debt 227.1 206.9 9.7%
--------------------------------------------------------------------------------
Net debt to EBITDA ratio 1.4x 1.1x 27.5%
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Gearing,% 69.9% 55.8%
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Equity ratio,% 43.7% 48.9%
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Personnel at end of period 3) 2,576 2,589 −0.5%
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1) EBITA is operating profit before amortisation and impairment of intangible
assets.
2) Rolling 12 months
3) 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:
“Our fourth-quarter net sales declined by 1.6% at comparable exchange rates
compared to the previous year. Increased geopolitical uncertainty and slow
economic growth in our main markets, combined with the rapid decline in oil
price, impacted negatively on net sales. Fourth-quarter EBITA decreased to EUR
14.5 million including EUR 3.7 million of restructuring costs and asset
write-downs. In the fourth quarter, cost reduction measures continued and we
held back on investments in the rental fleet and delivered a strong free cash
flow of EUR 32.6 (25.2) million.
For the full year 2014, net sales decreased by 5.2% to 613.5 million and EBITA
decreased to EUR 65.8 (92.1) million or 10.7% (14.2%) of sales. Cash flow after
investments was at EUR 21.8 (73.4) million. We maintained a solid financial
position with a Net debt to EBITDA ratio of 1.4x at the end of 2014.
Mixed market situation
In 2014, slow economic growth in our main markets and weaker than expected
recovery in the Nordic construction sector impacted negatively on the demand
for equipment rental. In the Nordic countries, we saw growth in Sweden, while
the demand picture remained weak in Finland reflecting the increased
geopolitical uncertainty. The rapid decline in oil prices led to cautiousness
in new investments in the Norwegian oil and gas sector and wider economy. In
Denmark our performance was burdened by internal restructuring measures. In
Europe East, our business grew rapidly in the Baltic countries while high
political and macroeconomic uncertainty continued in Fortrent markets in Russia
and Ukraine. In Europe Central, market activity increased in Poland and demand
started to pick up towards the end of the year in the Czech Republic and
Slovakia.
Advancing operational excellence
Implementation of the efficiency program continued throughout the year 2014
underpinning the aim of reaching Group EBITA margin target of 17%. The full
financial benefits from the program has not yet realised, partly due to more
adverse market conditions, even though we have made further progress in
improving our operational performance. In 2014, we developed further our common
business platform and logic, enhanced our sourcing operations, reorganised our
sales force, and developed our supply chain management.
To clarify Ramirent's ambition to offer a unique customer experience and to
differentiate from competitors, we have launched an improvement agenda called
NextRamirent. NextRamirent targets the company to become more competent,
proactive, conscious, safe and green, as well as more efficient - in all of its
operations. We want to grow as a proactive knowledge company that leads the
development of the rental business through the people of Ramirent providing
customers productivity gains by delivering More Than Machines™.
Our focus remains on developing a platform for sustainable profitable growth
To accelerate the execution of the group strategy and to realise more synergies
between the businesses we renewed our Group management structure in January
2015. In the new structure we organise all operating segments under two main
market areas, Scandinavia and North Central Europe.
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. Our efficiency actions will continue in 2015,
although we expect the targeted EBITA margin improvement stemming from these
actions to materialise mainly in 2016. Based on our continued solid financial
position, we will also continue pursuing outsourcing opportunities and
acquisitions.
We expect the market picture in 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.”
MARKET OUTLOOK 2014
According to a forecast from European Rental Association (ERA) in November
2014, the Finnish equipment rental market is estimated to increase by 2.1% in
2015. However, Ramirent expects market conditions to be challenging in Finland
in 2015. According to a forecast published by Euroconstruct in November 2014,
the Finnish construction market is expected to grow by 1.5% 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. 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.
According to a forecast published by ERA in November 2014, the Swedish
equipment rental market is expected to grow by 1.8% in 2015. The demand for
equipment rental is expected to improve in Sweden supported by increasing
activity in all construction sectors. According to a forecast published by
Euroconstruct in November 2014, the Swedish construction market is expected to
grow by 1.3% in 2015. New residential start-ups will remain at a high level due
to strong household's economy and 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.
According to a forecast published by ERA in November 2014, the Norwegian
equipment rental market is expected to grow by 1.1% in 2015. However, Ramirent
expects market conditions to be challenging in Norway in 2015 due to increased
macroeconomic uncertainty combined with rapid decline in oil prices. According
to a forecast published by Euroconstruct in November 2014, the Norwegian
construction market is expected to grow by 3.9% in 2015. Infrastructure
construction will be the main growth driver fuelled by several road, railway
and metro projects. 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.
According to the Norwegian Oil and Gas association, investments in the oil and
gas sector are estimated to decline by 11% in 2015.
The Danish equipment rental market is expected to continue its recovery in
2015. According to a forecast published by ERA in November 2014, the Danish
equipment rental market is expected to grow by 3.5% in 2015. According to a
forecast published by Euroconstruct in November 2014, the Danish construction
market is expected to increase by 2.9% in 2015. Renovation is estimated to grow
in all construction sectors in 2015. New residential construction is expected
to grow backed by good underlying demand in the major cities. Market activity
in non-residential construction is expected to improve mainly due to increasing
construction of buildings for education and health. Infrastructure construction
is forecasted to grow fuelled by several transport infrastructure projects. A
major infrastructure project, the Fehnmarnbelt tunnel between Denmark and
Germany, is expected to start summer 2015.
The overall demand in the Baltic equipment rental market is expected to remain
fairly stable 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 will support infrastructure
construction and renovation projects in the Baltics. The decline in the oil
price is expected to have a negative impact on energy sector projects.
Due to the prolonged Ukrainian crisis and rapid decline in oil prices, the
demand for equipment rental in Russia is expected to be modest in 2015.
Furthermore, the weakening of the rouble and high inflation have increased the
macroeconomic uncertainty in Russia. According to a forecast published by
Euroconstruct in November 2014, the Russian construction market is expected to
decrease by 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 due to the crisis and market
conditions are expected to remain challenging in 2015.
PROPOSAL OF THE BOARD ON THE USE OF DISTRIBUTABLE FUNDS
The parent company's distributable equity on 31 December 2014 amounted to EUR
342,899,079.01 of which the net profit from the financial year 2014 is EUR
9,556,746.93.
The Board of Directors proposes to the Annual General Meeting 2015 that an
ordinary dividend of EUR 0.40 (0.37) per share be paid for the financial year
2014. The proposed dividend will be paid to shareholders registered in
Ramirent's shareholder register maintained by Euroclear Finland Ltd on the
record date for dividend payment 27 March 2015. The Board of Directors proposes
that the dividend be paid on 10 April 2015.
The Board of Directors proposes further that the Annual General Meeting
resolves that the Board of Directors be authorised to decide at its discretion
on the payment of an additional dividend based on the adopted balance sheet for
the financial year ended on 31 December 2014. The authorisation is proposed to
be valid until the Annual General Meeting 2016 and the amount of the additional
dividend may not exceed EUR 0.60 per share.
The proposed dividend is not reflected in the year 2014 financial statements.
ANNUAL GENERAL MEETING 2015
Ramirent Plc's Annual General Meeting will be held in Scandic Marina Congress
Center, Fennia I, at the address of Katajanokanlaituri 6, 00160 Helsinki,
Finland on Wednesday 25 March 2014 at 10.00 a.m. The stock exchange release to
convene the AGM 2015 will be published on the Company's website 12 February
2015. Ramirent Plc's Annual Report will be published on the Company's website
on 27 February 2015.
CORPORATE GOVERNANCE STATEMENT 2014 AND REMUNERATION STATEMENT 2014
Ramirent complies with the Finnish Corporate Governance Code 2010 approved by
the Board of the Securities Market Association. Ramirent has published a
Corporate Governance Statement based on the recommendation 54 and a
Remuneration Statement based on the recommendation 47 of the Code, which are
attached to this release in pdf format and can be reviewed on the website of
Ramirent at www.ramirent.com.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged 12 February,
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 12 February 2015 at
11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and
conference call. Dial-in number for conference call: +358 9 81710465 (FI), +46
8 51999355 (SE), +44 2031940550 (UK) and +18552692605 (US). A recording of the
webcast will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR UNTIL END OF 2015
Ramirent observes a silent period during 21 days prior to the publication of
annual and interim financial results.
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, 12 February 2015
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION
Group President and CEO Magnus Rosén
tel.+358 20 750 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 302 customer centres in 10 countries.
Ramirent is listed on the NASDAQ Helsinki Ltd.
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