European rental giant Ramirent posted third quarter net sales of €169.2 (about U.S. $188 million) compared to €165.1 million in the third quarter of 2015, a 2.5-percent hike. EBITDA was €47.1 million, compared to €49.7 million a year ago.
For the first nine months of 2016, net sales was €484.7 million, a 4.2-percent increase compared to €465.2 million for the same period of 2015. EBITDA slid 2.5 percent for the period to €121.2 million.
“The profitability development of Ramirent has not reached its potential and in order to improve performance determined actions were initiated during the quarter, which affected the third quarter 2016 result through one-off write-downs and reorganization costs, “said Ramirent CEO Tapio Kolunsarka. “Our priority is now profitability. Our key actions include improving profitability of non-performing business units and areas, including refocusing the Temporary Space business in Norway, reorganizing parts of the Solutions business in Sweden and also parts of Europe Central’s business. We will also start driving an improved sales mix through increased focus on core General Rental business and developing pricing further.
“At the same time, we will develop our business to be more agile and customer focused. Overall we can improve productivity. We will reduce costs by rationalizing IT development as well as external materials and services spend. After a year of higher investments, focus will lie on increasing existing fleet productivity.”
Based in Helsinki, Finland, Ramirent operates in 10 European countries.