Outlook for 2016

Interim report Q3 2016
4 November 2016


Ramirent's guidance for 2016:

In 2016, Ramirent’s net sales in local currencies are expected to increase from the level in 2015 and EBITA-margin is expected to be lower than in 2015.

Market outlook for 2016:


Ramirent expects demand for equipment rental to remain favorable in Finland and Sweden driven by high activity in the construction sector. Also the Danish and Norwegian equipment rental markets are supported by the construction sector. In the Baltics, demand for equipment rental is estimated to remain stable and in Fortrent markets, in Russia and Ukraine, the market outlook is expected to remain uncertain. In Central Europe, the equipment rental market is supported by activity especially in the industrial sector in Poland and by new construction start-ups in Slovakia while the market outlook
is more subdued in Czech Republic due to declining construction output.


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Ramirent revised its guidance on 26 October 2016

The new guidance for 2016:
In 2016, Ramirent’s net sales in local currencies are expected to increase from the level in 2015 and EBITA-margin is expected to be lower than in 2015.

Previous guidance for 2016:
In 2016, Ramirent’s net sales in local currencies and EBITA-margin are expected to increase from the level in 2015.


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Half Year Financial Report 4 August 2016

RAMIRENT OUTLOOK FOR FULL YEAR 2016 UNCHANGED

In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected to increase from the level in 2015. 

MARKET OUTLOOK FOR 2016

Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries. Ramirent expects demand for equipment rental to grow in most of its markets in the second half of 2016. Overall increasing construction activity is driving demand especially in Sweden. In Finland, demand for equipment rental is supported by large projects in the building construction and in the industry sectors. The Norwegian equipment rental market remains challenging due to weak business climate in the oil & gas industry. In the Baltics, activity in the equipment rental market is estimated to remain stable supported by building and infrastructure construction. In Fortrent’s markets, Russia and Ukraine, the weakened situation in the construction market is expected to dampen demand for equipment rental. In Europe Central, the market demand is expected to improve in the second half of the year supported by EU funded infrastructure projects and favourable demand in the industrial sector.



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Q1 Interim Report 4 May 2016

RAMIRENT OUTLOOK FOR FULL YEAR 2016 UNCHANGED

In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected to increase from the level in 2015. 

MARKET OUTLOOK FOR 2016

The Nordic equipment rental market is expected to grow driven by increasing construction activity especially in Sweden and Denmark. In Finland, demand for equipment rental and related services is expected to recover supported by projects in the building construction and in the industry sectors. The Norwegian equipment rental market will remain challenging due to weak business climate in the oil & gas industry and continued softness in building construction activity. In Baltics, the equipment rental market is estimated to be balanced in 2016. In Fortrent’s markets, Russia and Ukraine, the weakened situation in the construction market is expected to dampen demand for equipment rental. In Europe Central, the market outlook is positive supported by EU funded infrastructure projects as well as construction and renovation of industrial buildings. Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries.

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Q4 Interim Report 11 February 2016

RAMIRENT OUTLOOK FOR FULL YEAR 2016

In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected to increase from the level in 2015.

Outlook by segment for 2016

Finland
Ramirent expects market conditions in the Finnish equipment rental market to be balanced in 2016. According to a forecast published in December 2015, Forecon expects the Finnish equipment rental market to grow by 3.0% in 2016.Increasing residential construction and renovation are expected to support demand in General Rental while activity within infrastructure construction will remain sluggish. Ongoing large commercial building and hospital projects are expected to support demand in Solutions. Renovation is estimated to exceed the value of new construction also in 2016. According to a forecast published by Euroconstruct in December 2015, the Finnish construction output is expected to increase by 3.2% in 2016. In the industrial sector, demand for General Rental and Solutions is estimated to recover driven by projects in the energy, shipyard and pulp and paper sectors. The Confederation of Finnish Industries (EK) expects full-year industrial investments to grow by 12.9% in 2016, mainly due to projects in general manufacturing and in the energy sector.


Sweden
Ramirent expects conditions in the Swedish equipment rental market to be favourable in 2016. According to a forecast published by Euroconstruct in December 2015, the Swedish construction market is expected to increase by 2.8% in 2016. High activity in residential construction and large ongoing infrastructure projects in Stockholm and Gothenburg are expected to support demand both in General Rental and in Solutions in 2016. Renovation construction is also expected to continue to increase driven by ageing building stock, energy efficiency requirements and government grants. Commercial and industrial construction projects are expected to support demand in Solutions. Market conditions for the Temporary Space business are expected to be favourable based on high demand from the public sector.

Norway
Ramirent expects market conditions for equipment rental to remain challenging in Norway in 2016. Modest economic growth, low oil prices and soft building construction activity continue to impact negatively on demand in General Rental as well as in Solutions. According to a forecast published by Euroconstruct in December 2015, the Norwegian construction market is expected to grow by 3.9% in 2016. However, the primary growth driver is infrastructure construction, while residential and non-residential construction, which are the main drivers for equipment rental, are estimated to remain close to the previous year’s level. According to an estimate by Norwegian Petroleum Directorate, investments in the oil and gas sector are estimated to decline by 10.0% in 2016. Ramirent expects demand in Temporary Space to be modest in the oil and gas sector but to improve in the public sector.

Denmark
Ramirent expects the equipment rental market in Denmark to grow in 2016 supported by favourable activity in the construction sector. According to a forecast published by Euroconstruct, the Danish construction market is estimated to increase by 2.3% in 2016. In General Rental, demand is driven by urbanisation and strong underlying demand from residential and infrastructure construction. Market outlook in the industry sector remains positive as a result of healthy economic growth and improved industrial confidence. Ramirent expects demand in General Rental and Solutions to be supported by a large programme to build new hospitals in Denmark. In Temporary Space, the need for renovation of preschools, schools and healthcare centres supports demand in 2016.

The Baltics
Ramirent expects the overall demand in the Baltic equipment rental market to be balanced in 2016. According to a forecast published by Euroconstruct in December 2015, the total construction output in the Baltics is expected to increase by 1.5% in 2016. Infrastructure construction is estimated to grow in all Baltic countries supported by EU and public funding which will benefit General Rental and Temporary Space business areas. Increasing non-residential construction activity is expected to support demand in General Rental and in Solutions. Residential construction is expected to remain close to the previous year’s level in 2016.

Fortrent (Russia and Ukraine)
The decline in the oil price has a negative impact on the economy and construction activity in Russia. The volatility of the rouble and the Russian financial market hinder economic growth in Russia. EU and US economic sanctions against Russia due to the Ukrainian crisis remain in place, creating further uncertainty over the development of the Russian economy. The weakened situation in the construction market, in turn, affects the demand for equipment rental and related services in Russia in 2016. According to the forecast published by Euroconstruct in December 2015, the Russian construction market is expected to decline by 2.6% in 2016. All construction sub-sectors, except infrastructure construction, are forecast to decline in 2016. In Ukraine,the outlook remains challenging.

Europe Central
Ramirent expects overall demand in Europe Central equipment rental markets to be favourable in 2016. According to a forecast published by Euroconstruct in December 2015, construction output in Europe Central is expected to grow by 5.8% in 2016. Demand in General Rental is expected to be fuelled by construction and renovation of power plants, wind power projects as well as EU funded infrastructure projects. Increasing activity especially in the non-residential construction sector is expect to support demand in Solutions.

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