Vantaa, Finland, 2016-10-26 07:30 CEST (GLOBE NEWSWIRE) --
RAMIRENT PLC STOCK EXCHANGE RELEASE 26 October 2016 08:30 EET
The profitability development of Ramirent has not reached its potential and the Q3 2016 result will also be impacted by one-off write-downs related to improvement actions. Ramirent´s reported Q3 2016 EBITA will be EUR 14.2 million (Q3 2015: 24.8) and EBIT EUR 0.2 (22.6) million. EBITA will include asset write-downs of EUR 5.9 million, reorganization costs of EUR 0.7 million and a negative impact from project reassessments of EUR 2.2 million. In addition, EBIT will include intangible asset write-downs of EUR 11.7 million. Reported Net Profit will be EUR -1.9 (14.4) million including a tax benefit of EUR 3.7 million from aforementioned items. Therefore Ramirent lowers its EBITA guidance for 2016. For 2017 the company sees profit improvement potential.
The new guidance for 2016:
In 2016, Ramirent’s net sales in local currencies are expected to increase from the level in 2015 and EBITA-margin is expected to be lower than in 2015.
Previous guidance for 2016:
In 2016, Ramirent’s net sales in local currencies and EBITA-margin are expected to increase from the level in 2015.
Released figures affecting Q3 2016 and Q4 2016:
Figures affecting Q3 2016 EBITA include EUR 5.9 million of asset write-downs from refocusing the Temporary Space business in Norway, a negative impact from Swedish Solutions projects of EUR 2.2 million and other reorganization costs of EUR 0.7 million. Figures affecting EBIT include EUR 10.9 million of intangible asset write-downs from discontinuing planned roll-out of the common ERP-system outside of Scandinavia and EUR 0.8 million investment write-downs in Temporary Space in Norway. Figures affecting Net Profit include a related tax benefit of EUR 3.7 million. In addition, Q4 2016 EBITA will be affected by EUR 0.5 million of reorganization costs in segment Europe Central. The released figures affecting the Q3 and Q4 results will not have any significant cash flow impact.
For 2017 Ramirent will make determined actions to improve profitability. Key priorities include:
1. Refocusing the Temporary Space business in Norway, reorganizing parts of the Solutions business in Sweden and Europe Central’s business where profitability has been unsatisfactory.
2. Cost reduction in IT development and external materials and services spend.
3. Improving sales mix through an increased focus on the core General Rental Business.
4. Improving pricing through simplification and more effective pricing management systems.
Ramirent’s Group strategy and financial targets as communicated in the Capital Markets Day 2015 remain in force with an increased focus on General Rental. A comprehensive strategy update will be completed during 2017.
”To improve performance we will take determined actions to reorganize non-performing parts of our business and start driving improved sales mix and productivity. In the long-term we see solid potential to grow and improve profitability in all of Ramirent’s Segments by optimizing the business platform, which has been built in the past years. However, in the near future we stay focused on putting our basics systematically right and delivering improved profitability,” says Tapio Kolunsarka, President and CEO of Ramirent Plc.
Ramirent’s Q3 2016 Interim Report will be published on 4 November 2016 at 9.00 a.m. EET.
FURTHER INFORMATION:
Tapio Kolunsarka, President and CEO, tel. +358 20 750 3630
Pierre Brorsson, CFO, tel.+46 8 624 9541
DISTRIBUTION:
NASDAQ Helsinki
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www.ramirent.com
Ramirent is a leading equipment rental group combining the best equipment, services and know-how into rental solutions that simplify customer’s business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. Ramirent has operations in the Nordic countries and in Central and Eastern Europe. In 2015, Ramirent Group sales totalled EUR 636 million. The Group has 2,700 employees in 287 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machines®.