RAMIRENT PLC STOCK EXCHANGE RELEASE 18.12.2008 AT 8:30 A.M. RAMIRENT EXPECTS 2009 RENTAL MARKET TO BE CLEARLY BELOW 2008 LEVEL AND REINFORCES ACTIONS TO SAFEGUARD CASH FLOW AND DEFEND PROFITABILITY - Ramirent expects rapid deceleration in 2009 construction volumes and the rental market to be clearly below the 2008 level. - Actions taken to realise annual fixed cost savings of EUR 50 million. - The Group estimates to reduce its workforce by a total of 600 persons. - Restructuring costs of EUR 25 million to be recognised in Q408. - Contingency plans have been developed to address the risk of further market decline. - A minimum need for investments in fleet capacity is expected in 2009 Ramirent's CEO Kari Kallio says: "The equipment rental business is structurally attractive in the long-term. While Ramirent will continue to execute its long-term growth strategy, the company is prepared to weather this downturn with its strong balance sheet and solid cash generation. Measures to streamline cost structure and a minimum need for investments in fleet capacity will safeguard cash flow and improve our competitiveness. We will focus on re-allocation of our modern fleet capacity to optimise utilisation and defend price levels". The reinforced actions are expected to generate fixed cost savings of around EUR 50 million at an annual level. These actions are expected to result in restructuring costs of around EUR 25 million in the fourth quarter of 2008. Group companies will initiate negotiations on possible lay-offs and redundancies. The impact on the personnel will become clear in each country once negotiations have been finalised. The company estimates it needs to reduce its workforce by 600 persons, out of a total of 4000 employees. Contingency plans have been developed to address the risk of further market decline and to rapidly implement changes where needed. Ramirent's full year 2008 guidance stays unchanged. For the full year 2008, the company expects net sales growth to continue and profit before taxes and earnings per share to be clearly below 2007 levels. The company will publish its financial statements 2008 bulletin on Thursday, 12 February 2009 at 9:00 a.m. Vantaa, 18.12.2008 RAMIRENT PLC Kari Kallio FURTHER INFORMATION: Kari Kallio, CEO, tel. +358 20 750 2830 or email kari.kallio@ramirent.com Heli Iisakka, CFO, tel. +358 20 750 3248 or email heli.iisakka@ramirent.com DISTRIBUTION: NASDAQ OMX Helsinki The main media www.ramirent.com Ramirent is the leading machinery rental company in the Nordic countries and in Central and Eastern Europe. The Group has some 360 permanent outlets in thirteen countries and is registered in Helsinki. Ramirent employs 4,000 people and in 2007 the consolidated net sales were EUR 634 million. Ramirent is listed on the OMX Nordic Exchange Helsinki.
RAMIRENT EXPECTS 2009 RENTAL MARKET TO BE CLEARLY BELOW 2008 LEVEL AND REINFORCES ACTIONS TO SAFEGUARD CASH FLOW AND DEFEND PROFITABILITY
| Source: Ramirent Oyj