Ramirent posts record sales in 2012 but still cautious

Ramirent said it will continue to take a cautious approach to investment in its fleet this year because of economic uncertainty. The company invested €101.3 million gross in 2012 compared to €169.2 million in 2011.

The company reported full year sales of €714.1 million, up 9.9% on 2011, with final quarter sales rising 3.9% to €194.1 million. Pre-tax profits for the year rose by 36.4% to €82.9 million.

The full year revenues represent a record for the business and was achieved with 3000 employees, which is 25% fewer than the 4000 in its previous top year, 2008, when sales reached €704 million.

Revenues were up significantly in most of Ramirent’s areas of operation except for Europe Central (Poland, Czech and Slovakian republics and Hungary), where revenues were down 15.1%, and Norway, where sales were flat.

Lower demand in Europe Central led Ramirent to reduce its depot network from 122 to 80 locations and cut employee numbers from 825 to 626. Fleet was relocated mainly to the Baltic area, which saw a good recovery in demand in 2012.

Magnus Rosén, Ramirent CEO, said it had been a good year for the company; “Our financial position strengthened, our cash flow increased significantly and all financial targets were met. In the Nordic countries, activity levels held up well with Norway experiencing the strongest overall market conditions.”

Mr Rosén said the economic situation remained uncertain; “Although we do not expect material changes in key markets in the first half of 2013, we aim to be cautious with capital expenditure, to have strict cost control and to maintain a strong balance sheet.”