International European rental giant Ramirent, based in Vantaa, Finland, increased net sales by 27.2 percent in the third quarter to €179.2 million (about U.S. $242.4 million) compared with €140.9 million for the third quarter a year ago. The organic growth rate was 18.8 percent. EBITDA was €58.6 million or 32.7 percent of sales.
For the nine-month period between January and September 2011, net sales jumped 21.5 percent from €381.2 million in 2010 to €463.1 million (about U.S. $627 million) this year.
Overall, the company said, the new residential construction, infrastructure and renovation construction markets are expected to develop favorably, especially in the Nordic countries, until the end of 2011, while demand for commercial construction remains weak. An improved balance between supply and demand indicates a healthier price level. However, with financial turmoil current, market risks have increased. Still overall, Ramirent predicts an overall improvement for 2011.
“The demand for Ramirent’s equipment rental was strong in the third quarter, which typically is the seasonably strongest quarter of the year in the equipment rental business,” said Magnus Rosen, Ramirent CEO. “Our net sales grew 27.2 percent in July through September on the comparison period, and our profitability continued to improve primarily thanks to the good fleet utilization rates. Net sales growth was strongest in the Nordic segments and Europe East based on good construction activity levels. Healthier balance between supply and demand has also gradually been improving the price levels in our markets. We have further expanded our network, totaling now 412 rental outlets. We have successfully integrated the six acquisitions and two outsourcing deals we have made during the year and they are positively contributing to our growth and profitability.
“The impact of the global economic turmoil was not evident in our operations in the third quarter; rather the general demand continued to be positive in all our segments. Nevertheless, visibility on the markets remains low and we continue to carefully monitor the development of our market environment. We will keep expenditure and costs under strict control.”
The company added that good market activity continued in the Nordic countries in construction and industrial sectors and Poland, while construction volumes during the quarter decreased in Slovakia, Czech Republic and Hungary. Infrastructure construction activity developed favorably in Russia and energy-related investments in the Baltic countries and Ukraine during the third quarter.