Source: Ramirent Oyj
Vantaa, Finland, 2013-11-08 08:00 CET (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
JULY–SEPTEMBER 2013 HIGHLIGHTS
- Ramirent net sales EUR 166.2 (185.9) million, down by 10.6% (down by 8.7% at comparable exchange rates); adjusted for transferred or divested operations, net sales decreased by 3.3% at comparable exchange rates.
- EBITA1) EUR 25.9 (31.8) million or 15.6% (17.1%) of net sales
- EBITA1) excluding non-recurring items2) EUR 29.3 (31.8) million or 17.6% (17.1%) of net sales
- The non-recurring items include EUR 1.9 million loss from disposal of Hungary and EUR 1.5 million restructuring provision in Denmark
- Cash flow after investments EUR 34.4 (23.7) million
JANUARY–SEPTEMBER 2013 HIGHLIGHTS
- Ramirent net sales EUR 479.8 (519.9) million, down by 7.7% (down by 7.8% at comparable exchange rates); adjusted for transferred or divested operations, net sales decreased by 4.0% at comparable exchange rates.
- EBITA1) EUR 71.2 (70.9) million or 14.8% (13.6%) of net sales
- EBITA1) excluding non-recurring items3) EUR 64.4 (70.9) million or 13.4% (13.6%) of net sales
- Net result EUR 40.1 (43.8) million and EPS EUR 0.37 (0.41)
- Gross capital expenditure EUR 91.9 (87.2) million
- Cash flow after investments EUR 48.2 (37.3) million
- Net debt to EBITDA ratio 1.1x (1.2x)
RAMIRENT 2013 OUTLOOK UNCHANGED
Ramirent’s 2013 EBITA is expected to be slightly below the 2012 level.
|KEY FIGURES (MEUR)||7–9/13||7–9/12||Change||1–9/13||1–9/12*||Change||1-12/12*|
|% of net sales||31.3%||32.5%||31.0%||29.6%||29.5%|
|% of net sales||15.6%||17.1%||14.8%||13.6%||14.1%|
|% of net sales||14.6%||16.0%||13.2%||12.5%||13.0%|
|% of net sales||12.4%||15.0%||10.6%||11.3%||11.6%|
|Earnings per share (EPS), (basic and diluted), EUR||0.16||0.19||−19.9%||0.37||0.41||−8.4%||0.59|
|Gross capital expenditure on non-current assets||29.5||27.6||7.0%||91.9||87.2||5.4%||124.0|
|Gross capital expenditure,% of net sales||17.8%||14.8%||19.2%||16.8%||17.4%|
|Cash flow after investments||34.4||23.7||45.3%||48.2||37.3||29.1%||54.2|
|Invested capital at the end of period||604.1||605.1||0.0%||604.3|
|Return on invested capital (ROI),% 4)||17.5%||19.5%||18.9%|
|Return on equity (ROE),% 4)||16.9%||18.7%||18.6%|
|Net debt to EBITDA ratio||1.1x||1.2x||1.1x|
|Personnel at end of period||2,592||3,027||−14.4%||3,005|
1) EBITA is operating result before amortisation and impairment of intangible assets.
2) The non-recurring items include EUR 1.9 million loss from disposal of Hungary and EUR 1.5 million restructuring provision in Denmark.
3) The non-recurring items include a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent, the EUR 1.9 million loss from disposal of Hungary and the EUR 1.5 million restructuring provision in Denmark.
4) The figures are calculated on a rolling twelve month basis.* Retrospective application of amendment to IAS19 affecting Sweden and Norway segments
MAGNUS ROSÉN, RAMIRENT CEO:
“Net sales decreased by 3.3% at comparable exchange rates in the third quarter, adjusted for the transfer of the operations in Russia and Ukraine to Fortrent as well as the divestment of our Hungarian business. The demand for equipment rental in the third quarter was influenced by slightly weaker demand in the construction sector in the Nordic markets except for Denmark, which saw some pick-up in activity. Demand in the industrial sector remained fairly active in our Nordic markets. Europe East enjoyed favourable market conditions reflected in good demand for equipment rental. The integration of Fortrent’s business operations continued according to plan. In Europe Central, market conditions remained weak and we continued to scale down operations to fit the reduced demand situation.
In the third quarter, Ramirent Group’s EBITA margin excluding non-recurring items improved to 17.6% (17.1%). Finland and Norway were the best performing countries. Cash flow was strong for the first nine months, showing an improvement of 29.1% despite an increase in capital expenditure. Our financial position strengthened further during the third quarter. Profitability was in line with our expectations in all segments except for Denmark, where we have initiated measures to improve profitability.
During the review period, we finalised the divestment of our Hungarian operation in accordance with our strategy to focus on higher growth opportunities in our core markets in the Baltic Sea region.
The near-term market outlook continues to be uncertain. We are however well-positioned to manage changes in market conditions. At the same time, we continue to develop our common Ramirent platform to realise higher operational synergies throughout the Group.
We are also strengthening our long-term competitiveness by continuously working to expand our customer value proposition and developing our customer care model to improve customer experience in all our customer sectors. We have increased emphasis on developing the knowledge and skill set of our workforce.”
MARKET OUTLOOK 2013
According to a forecast published by Confederation of Finnish Construction Industries (RT) in October 2013, the Finnish construction market is expected to decrease by 3.0% in 2013. Both residential and non-residential construction, are forecasted to decrease in 2013. However, renovation is estimated to increase in residential and non-residential sectors during this year. The market situation in infrastructure construction is predicted to weaken.
According to a forecast published by Swedish Construction Federation in October 2013, the Swedish construction market is expected to decrease by 1.0% in 2013. Residential construction is estimated to increase from the previous year’s level. Non-residential construction is expected to decrease in 2013, whilst the renovation market is forecasted to be steady in all construction sectors in 2013.
The growth in Norwegian construction market is expected to decelerate slightly in 2013. According to a forecast published by Prognosesenteret in October 2013, the Norwegian construction market is forecasted to grow by 3.9% in 2013. Market activity is estimated to remain good in residential and infrastructure construction. The renovation sector is also growing, although at a slower pace than new construction. Demand in the oil and gas sector is expected to remain at a good level.
The Danish construction market started to recover slowly during the third quarter. According to Danish Construction Industry, the construction market will decrease by 0.8% in 2013. Demand in the renovation market is expected to grow. Residential construction is expected to remain at a low level in 2013. Non-residential construction is estimated to decrease this year.
In the Baltic States, the market situation is expected to remain at a healthy level. Recovery of the Baltic construction market is estimated to continue in the fourth quarter of 2013. According to the Euroconstruct forecast in June 2013, the construction market in the Baltic States is expected to grow at a moderate rate, about 2−4% in 2013.
The market outlook for Russia is positive in the longer term, but decelerating economic growth is impacting also the construction sector. In 2013, the construction market is estimated to increase by 3% in Russia according to the Euroconstruct forecast published in June 2013. Equipment rental is expected to grow more than the construction activity in 2013. In Ukraine, the market situation is still challenging.
Ramirent is not expecting a recovery in the Europe Central markets in 2013. According to the Euroconstruct forecast in June 2013, the construction market in Poland is estimated to decline by 5.6% in 2013. Construction volumes are expected to decrease by 6.0% in Czech Republic and by 2.0% in Slovakia in 2013.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Friday 8 November 2013 at 11:00 a.m. Finnish time at the Event Arena Bank, Wall Street Cabinet 22, Unioninkatu 22, Helsinki.
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Friday 8 November 2013 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 8171 0461 (FI), +46 8 5055 6477 (SE), +44 20 3194 0544 (UK) ja +1 855 269 2605 (US). Recording of the webcast will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR 2013–2014
Ramirent observes a silent period during 21 days prior to the publication of annual and interim financial results.
Capital Markets Day 2013 28 November 2013 at 8:30 a.m
Financial statements 2013 17 February 2014 at 9:00 a.m.
Annual Report 2013 28 February 2014
Annual General Meeting 26 March 2014
Interim report January–March 8 May 2014 at 9:00 a.m.
Interim report January–June 29 July 2014 at 9:00 a.m.
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, 8 November 2013
Board of Directors
Group President and CEO Magnus Rosén, tel.+358 20 750 2845, firstname.lastname@example.org
CFO and EVP Corporate Functions Jonas Söderkvist, tel.+358 20 750 3248, email@example.com
SVP, Marketing, Communications and IR Franciska Janzon, tel.+358 20 750 2859, firstname.lastname@example.org
NASDAQ OMX Helsinki
Main news media
Ramirent is a leading equipment rental group delivering Dynamic Rental Solutions™ that simplify business. We serve a broad range of customers, including construction and process industries, shipyards, the public sector and households. In 2012, the Group’s net sales totalled EUR 714 million. The Group has 2,600 employees at 306 customer centres in 10 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.