RAMIRENT PLC COMPANY ANNOUNCEMENT 8 MAY 2013
Vantaa, Finland, 2013-05-08 08:00 CEST (GLOBE NEWSWIRE) —
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
JANUARY–MARCH 2013 HIGHLIGHTS
– Ramirent net sales EUR 152.8 (164.3) million, down by 7.0% (down 8.7% at comparable exchange rates). Sales decrease excluding operations in Russia and Ukraine for March 2012 was 5.6%.
– EBITDA EUR 48.1 (41.9) million or 31.5% (25.5%) of net sales
– EBITA EUR 22.6 (14.4) million or 14.8% (8.7%) of net sales
– EBITA excluding non-recurring items1) was EUR 12.4 million or 8.1% (8.7%) of net sales
– EBIT EUR 18.0 (12.3) million or 11.8% (7.5%) of net sales
– EBIT excluding non-recurring items1) was EUR 10.7 (12.3) million or 7.0% (7.5%) of net sales.
– Net result EUR 11.0 (7.9) million and EPS EUR 0.10 (0.07)
– Cash flow after investments EUR 19.0 (6.4) million
– Net debt EUR 220.3 (257.7) million
– Net debt to EBITDA ratio 1.0x (1.2x)
RAMIRENT 2013 OUTLOOK
Ramirent outlook for 2013 remains unchanged. For the full year 2013, EBITA is expected to remain at the 2012 level.
| KEY FIGURES (MEUR) | 1–3/13 |
Restated* 1–3/12 |
Change |
Restated* 1–12/12 |
| Net sales | 152.8 | 164.3 | −7.0% | 714.1 |
| EBITDA | 48.1 | 41.9 | 14.9% | 210.5 |
| % of net sales | 31.5% | 25.5% | 29.4% | |
| EBITA 1,2) | 22.6 | 14.4 | 56.9% | 100.6 |
| % of net sales | 14.8% | 8.7% | 14.1% | |
| EBIT 1) | 18.0 | 12.3 | 45.9% | 92.5 |
| % of net sales | 11.8% | 7.5% | 13.0% | |
| EBT | 15.2 | 10.7 | 42.5% | 83.0 |
| % of net sales | 9.9% | 6.5% | 11.6% | |
| Earnings per share (EPS), (basic and diluted), EUR | 0.10 | 0.07 | 39.6% | 0.59 |
| Gross capital expenditure on non-current assets | 32.4 | 35.7 | −9.3% | 124.0 |
| Gross capital expenditure,% of net sales | 21.2% | 21.7% | 17.4% | |
| Cash flow after investments | 19.0 | 6.4 | 197.4% | 54.2 |
| Invested capital at the end of period | 654.0 | 565.1 | 15.7% | 604.3 |
| Return on invested capital (ROI), % 2) | 18.9% | 19.6% | 18.9% | |
| Return on equity (ROE), % 2) | 20.7% | 16.9% | 18.6% | |
| Net debt | 220.3 | 257.7 | −14.5% | 239.4 |
| Net debt to EBITDA ratio 3) | 1.0x | 1.2x | 1.1x | |
| Gearing, % | 64.5% | 84.6% | 65.8% | |
| Equity ratio, % | 38.2% | 37.6% | 43.7% | |
| Personnel at end of period | 2,751 | 3,086 | −10.9% | 3,005 |
1) The non-recurring items include a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent and a goodwill impairment loss of EUR 2.9 million due to weak market conditions in Hungary.
2) EBITA is operating result before amortisation and impairment of intangible assets
3) The figures are calculated on a rolling twelve month basis
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
MAGNUS ROSÉN, RAMIRENT CEO:
“In the first quarter, our net sales were affected by a slightly declining underlying market and a long winter season especially in the Nordic countries, where construction start-ups have been postponed. Demand in the industrial sector remained stable during the first three months of the year.
During the first quarter, we have continued to develop a common and consistent business model to realize synergies in all operating countries. In order to meet the weakening market demand, we have scaled down our operations in Europe Central segment and made fleet relocations to improve utilisation rates. We also continued to reduce the workforce and number of customer centres in Europe Central.
Fortrent, a joint venture of Ramirent and Cramo in Russia and Ukraine, started its operations in March. Fortrent is the leading equipment rental company in these markets offering us attractive long-term growth potential. The integration process of Ramirent’s and Cramo’s operations is proceeding according to plan.
The macroeconomic situation in Europe is still uncertain and we are prepared for changes in operating environment. Ramirent seeks sustainable profitable growth and we want to maintain our strong balance sheet. We will be cautious with costs and capital expenditure.”
MARKET OUTLOOK 2013
According to a forecast published by Confederation of Finnish Construction Industries (RT) in April 2013, the Finnish construction market is expected to decline by 3.0% in 2013. Residential construction is estimated to be below the level of long-term trend. Non-residential construction is forecasted to decrease in 2013. According to RT, renovation is estimated to increase by 3% in 2013.
In Sweden, the construction volume is forecasted to decrease by 1% in 2013 according to the Swedish Construction Federation’s forecast in April 2013. Residential and non-residential construction is expected to remain stable. Infrastructure construction is forecasted to remain on the previous year’s level.
The Norwegian construction market is expected to remain favourable in 2013. According to the forecast by Prognoscentret in April, construction market is forecasted to grow by 5.8% in 2013. Market activity is estimated to remain good especially in residential as well as infrastructure construction. Prognoscentret anticipates that renovation continues to grow in Norway in 2013. Demand in several industrial sectors is expected to remain favourable.
Danish construction market is estimated to start recovering gradually from the second quarter onwards. According to the Danish Construction Industry forecast in April, the construction market is estimated to decrease by 1.4% in 2013. Construction of non-residential buildings and infrastructure construction is forecasted to grow slightly in 2013. Residential construction is expected to remain stable.
In the Baltic states, market situation was relatively stable, however market volumes are still clearly below peak market levels. Recovery of the Baltic construction sector is estimated to continue in 2013. According to the Euroconstruct forecast in December 2012, construction market in Baltic States is expected to grow at moderate rate, about 2−4% in 2013.
Ramirent is not expecting a recovery in the Europe Central markets before in 2013. According to the Euroconstruct, construction markets in Europe Central countries (Poland, Czech Republic, Slovakia, and Hungary) are expected to decline by 1−4% in 2013.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Wednesday 8 May 2013 at 11:00 a.m. Finnish time at WTC, World Trade Center Helsinki, Sodexo, Marski Hall, (visiting address: Aleksanterinkatu 17, Helsinki).
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Wednesday 8 May 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 0025 (UK) +1 334 323 6201 (USA) and conference password is 931456. 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–June 2013
8 August 2013 at 9:00 a.m.
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 May 2013
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION
CEO Magnus Rosén
tel.+358 20750 2845, magnus.rosen@ramirent.com
CFO Jonas Söderkvist
tel.+358 20750 3248, jonas.soderkvist@ramirent.com
IR Franciska Janzon
tel.+358 20750 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 2,800 employees at 334 customer centres in 13 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.