Ramirent Ups Revenue in Third Quarter and First Nine Months of 2016

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.

Michael Roth

Nov. 5, 2016

2 min read

Ramirent hopes to improve profitability in the Temporary Space segment.

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.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.