Ramirent's growth slows in third quarter

Ramirent’s growth slowed in the third quarter, with revenues up 3.7% to €185.9 million compared to the 13.5% increase in the second quarter. Profit before tax was up 8.9% to €27.9 million.

The company said it was continuing to monitor market conditions closely and was ready to adjust its operations if necessary. It remains cautious on capital expenditure, with investment for the first nine months of the year around half that of 2011.

Although most of its market areas performed reasonably, the company’s central Europe business - Czech Republic, Hungary, Poland and Slovakia - continued to see weak market conditions. Sales were down 16.9% to €17.9 million and it was break even on EBIT profits.

Magnus Rosén, Ramirent CEO, said; “Overall activity levels held up fairly well in our Nordic countries as well as in our Europe East segment. But as expected, Q3 was difficult for our Europe Central business.”

He said; “Our priority remains on cautious capital expenditure, cost and risk control.”

Ramirent this week announced a joint venture with Nordic competitor Cramo to merge their rental operations in Russia and the Ukraine.