23.10.2004

United Rentals up 8.8 percent at nine months

United Rentals the owner of the worlds largest aerial lift rental fleet with over 60,000 units, has reported a rise in revenues of 5.5 percent for the third quarter of 2004 compared to the same quarter in 2003. Year to date sales are up by 8.8 percent to $2.27 million.

General rentals which includes the aerial lift fleet and represents some 90 percent of Uniteds business increased by over 11 percent for the nine months with rates increasing by over seven percent. This rate improvement accelerated in the third quarter with rates up by 12 percent over the same period last year. Financial utilisation of the fleet increased by over two percent to 67.4 percent.

Net income for the year to date period was $93 million but this does not include a goodwill write off in the traffic control sector. After write offs and GAAP rules the net income for the nine months was a mere $43 million.

Wayland Hicks, chief executive officer said, “The 32% growth in adjusted diluted earnings per share this quarter reflected continued strong performance in our general rentals business and lower interest expense due to the refinancing of our debt. We achieved this growth despite disappointing results in our traffic control business.

"The 10.7% increase in general rentals total revenues included 12% growth in same-store rental revenues as well as contractor supplies sales growth of 25%. Same-store performance was driven primarily by an 8.5% rise in rental rates, our strongest quarterly rate improvement to date. The impact of the revenue growth on profitability was enhanced by our operating leverage, resulting in general rentals operating income growth of 29%, more than twice the rate of revenue growth.”

Hicks continued, “We are maintaining our full year 2004 outlook for diluted earnings per share, excluding charges, of $1.20. Although we have not yet completed our operating plan for 2005, we are encouraged by the improving trends in private non-residential construction.”