21.07.2011

United Rentals up 11%

US based United Rentals has reported first half revenues up over 11% on 2010, with further improvement in the second quarter.

Total revenues for the six months were $1,152 million - 11.5 percent higher than in the same period last year, while rental revenues climbed over 15 percent to $958 million. Pre-tax profits were $12 million, compared to a loss of $61 million in the first half of last year.

The second quarter saw total revenues grow by 13 percent to $629 million, while rental revenues jumped 16.4 percent to $524 million, driven by a 6.1 percent improvement in rental rates and a 13.8 percent growth in equipment out on rent.

The company has reaffirmed its outlook that rental rates will improve by at least five percent for the full year. Pre-tax profits in the quarter were $39 million compared to $3 million in the second quarter of 2010.

Utilisation in the second quarter was 69 percent, an increase of 3.6 percent over the same period last year and a new second quarter record for the company. United has therefore upgraded is utilisation forecasts for the full-year to 2.5 percent.

The company generated $41 million from the sale of used equipment compared with $37 million last year.

Michael Kneeland, chief executive said: “Our strong numbers in the quarter defied a flat construction environment, and elevated our performance well above the same period last year. It was our fifth consecutive quarter of record time utilization, with a gain of more than six points of rate on a larger fleet. As we capitalize on the increasing demand for our equipment, we are also scrutinizing our cost structure for sound ways to enhance our operating leverage."

"Looking to the balance of the year, we expect our performance to remain robust as we move closer to our near term goal of a billion dollars of EBITDA and stronger margins. Although the recovery itself can be difficult to predict, our results are being propelled by a strategic plan that does not rely on our operating environment. We are continuing to shape our customer mix, fleet mix and operations in ways that create demand for our equipment now and in the long term."