Ramirent maintains growth but prices still too low

Growth in Sweden and central and eastern Europe help boost Ramirent's second quarter revenues by 16.1% to €149.5 million. EBITDA profits increased by 32.1% to €40.6 million but Ramirent said prices remained unsatisfactory. Net profits more than doubled to just over €9 million.

Ramirent said it expected the recovery in its market areas to continue, but warned that it remained cautious about the outlook because of the current financial turmoil in the Eurozone.

Sales in Sweden grew by 20.9%, in Europe East (Baltic States, Russia and Ukraine) by 36.9% and in Europe central (Poland, Hungary, Czech and Slovakian republics) by 19.6%.

Sales growth in Norway and Denmark were both around 10%, while in Finland sales were only slightly up, with growth slowed by year-on-year by lower activity in shipyards, industrial maintenance and private households.

Magnus Rosén, Ramirent's CEO, said; "Activity levels continued to improve in the second quarter contributing to net sales growth in all our segments...Profitability improved also due to the higher business volumes and efficiency improvements from relocation of fleet capacity and expansion of the outlet network. However, profitability is still burdened by unsatisfactory price levels. Our priority therefore remains on raising price levels as the demand is returning to our various product groups.

Mr Rosén said Ramirent maintained a cautious stance on the market recovery because of the current macroeconomic uncertainty; "Our focus remains on continued operational development, maintaining a strong financial position and we have contingency plans in place to manage changes in the market situation."

The company has almost trebled its fleet investment in the first half of the year, spending €68.0 million in the period compared to €26.4 million in the first half of 2010.