Challenging third quarter for Ramirent

Ramirent’s net sales increased by 2.5% to €169.2 million in the third quarter, compared to the same period in 2015.

Sales grew in Finland, Sweden and Norway, driven mainly by good demand in general rental in the quarter. In the Baltics and in Central Europe sales were stable, said the company, while sales declined in Denmark, due to lower sales in its solutions segment.

Third quarter EBITDA decreased by 5.3%, compared to the third quarter 2015, to €47.1 million. Profitability weakened slightly in Finland and Norway and particularly in Sweden, while it remained on par with last year in Europe Central and Eastern Europe.

Tapio Kolunsarka, Ramirent CEO said, “The profitability development of Ramirent has not reached its potential and in order to improve performance, determined actions were initiated during the quarter, which affected the result through one off write downs and reorganisation costs.”

Mr Kolunsarka added, “Our key actions include improving profitability of nonperforming business units and areas, including refocusing the Temporary Space business in Norway, reorganising parts of the Solutions business in Sweden and also parts of Central Europe’s business.

Ramirent said it expects demand for equipment rental to remain favourable in Finland and Sweden driven by high activity in the construction sector, as is the case too in Denmark and Norway.

“In the Baltics, demand for equipment rental is estimated to remain stable and in Fortrent markets, in Russia and Ukraine, the market outlook is expected to remain uncertain,” said Mr Kolunsarka.

“In Central Europe, the equipment rental market is supported by activity especially in the industrial sector in Poland and by new construction start-ups in Slovakia while the market outlook is more subdued in Czech Republic due to declining construction output.”