07.11.2007

Rami rises 29%

Ramirent one of Europe’s largest rental companies has reported its third quarter and nine month results. Revenues for the nine months increased by 29.2 percent to €454.5 million, while Operating Income (EBIT) jumped by 50 percent to €111.2 million (24.5% of revenues).

Pre tax profits were up by 40.6 percent to $102 million. The company sharply increased capital expenditure on its rental fleet to €187.4 million up from €137 million at the same point last year. The increased expenditure had a measurable effect on debt levels and gearing.

The group revenues are broken down as follows: Finland €97.5 million, Sweden €109.7 million, Norway €104.2 million, Denmark €41.5 (35.9) million, and Ramirent Europe for EUR 102.7 million. The growth was mostly organic.

In the third quarter Ramirent Europe, which covers all of the old Eastern block countries, became the largest segment in the group representing 25 percent of all revenues.

Kari Kallio, Ramirent’s chief executive officer said:
“The rental market remained strong in most countries where we are operating and all of our five business segments continued the profitable growth. In the Nordic Countries, Sweden and Norway displayed a strong improvement in profitability and Finland delivered again a very strong quarter.
In Denmark, the growth of net sales and operating profit improved, but not as strongly as in the other Nordic Countries.”

“The rapid growth in Central and Eastern Europe continued and the rental market demand remained on a high level. Ramirent Europe became for the first time the largest business segment in the Group, accounting for 25% of the total sales in the third quarter”.

“All countries in Ramirent Europe segment, except Hungary, continued the strong growth and improved profitability.”

Vertikal Comment

Rami continues to perform well and has proven yet again that it is able to expand organically and to gain maximum benefit from its acquisitions.

At this pace the company is on track to sail past €600 million revenues this year and on target to become Europe’s largest rental company.