RAMIRENT PLC COMPANY ANNOUNCEMENT 8 AUGUST 2013
Vantaa, Finland, 2013-08-08 08:00 CEST (GLOBE NEWSWIRE) —
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
APRIL–JUNE 2013 HIGHLIGHTS
- Ramirent net sales EUR 160.8 (169.7) million, down by 5.3% (down by 5.8% at comparable exchange rates); adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, net sales decreased by 0.7%.
- EBITA1) EUR 22.7 (24.7) million or 14.1% (14.6%) of net sales
- Cash flow after investments EUR –5.2 (7.3) million
- After the review period, agreement signed to divest Hungarian operations
JANUARY–JUNE 2013 HIGHLIGHTS
- Ramirent net sales EUR 313.6 (334.1) million, down by 6.1% (down by 7.2% at comparable exchange rates); adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, net sales decreased by 3.2%.
- EBITA1) EUR 45.3 (39.1) million or 14.4% (11.7%) of net sales
- EBITA1) excluding non-recurring items2) EUR 35.1 (39.1) million or 11.2% (11.7%) of net sales
- Net result EUR 23.3 (22.9) million and EPS EUR 0.22 (0.21)
- Gross capital expenditure EUR 62.4 (59.6) million
- Cash flow after investments EUR 13.8 (13.6) million
- Net debt to EBITDA ratio 1.2x (1.4x)
RAMIRENT 2013 OUTLOOK REVISED
Ramirent previously estimated the full year 2013 EBITA to remain at the 2012 level. Due to the non-recurring cost of divesting Hungary, Ramirent’s 2013 EBITA is expected to be slightly below the 2012 level.
| KEY FIGURES (MEUR) | 4–6/13 | 4–6/12 | Change | 1–6/13 | 1–6/12* | Change | 1-12/12* |
| Net sales | 160.8 | 169.7 | −5.3% | 313.6 | 334.1 | −6.1% | 714.1 |
| EBITDA | 48.8 | 51.6 | −5.5% | 96.8 | 93.5 | 3.6% | 210.5 |
| % of net sales | 30.3% | 30.4% | 30.9% | 28.0% | 29.5% | ||
| EBITA 1) | 22.7 | 24.7 | −8.3% | 45.3 | 39.1 | 15.7% | 100.6 |
| % of net sales | 14.1% | 14.6% | 14.4% | 11.7% | 14.1% | ||
| EBIT | 21.0 | 22.7 | −7.8% | 39.0 | 35.1 | 11.1% | 92.5 |
| % of net sales | 13.0% | 13.4% | 12.4% | 10.5% | 13.0% | ||
| EBT | 15.2 | 20.0 | −23.7% | 30.4 | 30.6 | −0.6% | 83.0 |
| % of net sales | 9.5% | 11.8% | 9.7% | 9.2% | 11.6% | ||
| Earnings per share (EPS), (basic and diluted), EUR | 0.11 | 0.14 | −17.8% | 0.22 | 0.21 | 2.1% | 0.59 |
| Gross capital expenditure on non-current assets | 30.0 | 23.9 | 25.5% | 62.4 | 59.6 | 4.7% | 124.0 |
| Gross capital expenditure,% of net sales | 18.7% | 14.1% | 19.9% | 17.8% | 17.4% | ||
| Cash flow after investments | −5.2 | 7.3 | n/a | 13.8 | 13.6 | 1.0% | 54.2 |
| Invested capital at the end of period | 611.3 | 601.9 | 1.6% | 604.3 | |||
| Return on invested capital (ROI), % 3) | 19.2% | 19.0% | 18.9% | ||||
| Return on equity (ROE), % 3) | 19.3% | 19.0% | 18.6% | ||||
| Net debt | 264.2 | 280.6 | −5.9% | 239.4 | |||
| Net debt to EBITDA ratio | 1.2x | 1.4x | 1.1x | ||||
| Gearing, % | 76.8% | 87.9% | 65.8% | ||||
| Equity ratio, % | 43.1% | 39.1% | 43.7% | ||||
| Personnel at end of period | 2,777 | 3,129 | −11.2% | 3,005 |
1) EBITA is operating result before amortisation and impairment of intangible assets.
2) The non-recurring items include a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent
3) 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:
“The slow start of the year continued into the beginning of the second quarter due to cold spring weather. Net sales decreased by 0.7% in the second quarter; adjusted for the transfer of the operations in Russia and Ukraine to Fortrent. Sweden and Norway were the best performing markets. Margins remained stable over the period and in the second quarter we delivered EBITA of 14.1% (14.6%) on net sales of EUR 160.8 (169.7) million. We reached all our long-term financial targets during the second quarter. Although, we will continue our work to drive profitable growth.
Overall, market development is mixed. In the Nordic countries, market demand was at a fairly good level, except for Finland where activity weakened compared to last year. Demand for equipment rental remained stable in Europe East. In Europe Central, market conditions remained weak and our measures to scale our operations to fit the reduced demand situation continued. Demand in the industrial sector remained stable in the Nordic countries. The integration of Fortrent’s business operations is proceeding according to plan.
After the review period, we have signed an agreement to exit the Hungarian market. This divestment is in line with our aim to strengthen the strategic focus on higher growth opportunities in our core markets in the Baltic Sea region. The sale of the Hungarian operation will result in a non-recurring divestment cost of approximately EUR 2 million, which will be recognised in other operating expenses in the third quarter.
Due to uncertainty in the near-term demand outlook, we maintain high readiness to manage changes in market conditions. Our focus is on operating on cautious capital expenditure, strict cost control and on maintaining a strong balance sheet.
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 developing our workforce and improving customer experience in all our customer sectors through integrated solutions and value-added rental services.”
MARKET OUTLOOK 2013
According to a forecast published by Euroconstruct in June 2013, the Finnish construction market is expected to decrease by 1.2% 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 remain stable.
According to a forecast published by Euroconstruct in June 2013, the Swedish construction market is expected to decrease by 0.8% in 2013. Residential construction is estimated to remain at the previous year’s level. Non-residential construction is expected to decrease in 2013, whilst the renovation market is forecasted to grow in all construction sectors in 2013.
The Norwegian construction market is expected to remain favourable in 2013. According to a forecast published by Euroconstruct in June 2013, the Norwegian construction market is forecasted to grow by 5.7% in 2013. Market activity is estimated to remain good especially 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 second quarter. According to Euroconstruct, the construction market will increase by 3.0% in 2013. Demand in the renovation market is expected grow. Residential construction is expected to remain at a low level in 2013. Non-residential construction is estimated to increase this year.
In the Baltic States, the market situation is expected to remain stable. Recovery of the Baltic construction market is estimated to continue in the second half 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 the economic uncertainty in Europe was also reflected in Russia during the first half of the year. In 2013, the construction market is estimated to increase by 3% in Russia according to the Euroconstruct forecast in June 2013. Equipment rental is expected to grow clearly more than construction activity. 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. In Czech Republic, Slovakia, and Hungary, construction volumes are expected to decrease by 1.0%−6.0% in 2013.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Thursday 8 August 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 Thursday 8 August 2013 at 11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and conference call. Dial-in number: +44 (0)20 7162 0077 (UK) +1 334 323 6201 (USA) and conference password is 934068. Recording of the webcast will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR 2013
Ramirent observes a silent period during 21 days prior to the publication of annual and interim financial results.
Interim Report January–September 2013 8 November 2013 at 9:00 a.m.
The financial information in this stock exchange release has not been audited.
Vantaa, 8 August 2013
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 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 more than 2,700 employees at 325 customer centres in 11 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.