24.07.2011

RSC up 23%

US rental company RSC has reported first half revenues up 23.6% as it returns to profit in second quarter.

Six months revenues were $694 million 23.6 percent higher than the same period in 2010, while pre-tax losses were reduced from 92.2 million last year to a loss of $79.5 million this year.

In the second quarter revenues climbed 22 percent to $367million, while pre-tax profits were $1.06 million compared to a loss of $35.3 million in the same quarter in of 2010.

The company says that rental rates in the second quarter were 6.3 percent higher than a year ago, while utilisation was 68 percent compared to 64 percent in the second quarter of 2010. Capital expenditure was $209 million in the first half, while sales of used equipment from the fleet totalled $78 million.

The average age of the fleet at the end of June was 41 months compared to 42 months at the end of June 2010.

Chief executive Erik Olsson said: "We have once again significantly outpaced the growth of our end markets and produced another quarter of exceptional volume growth of 15.2 percent, while at the same time generating positive year-over-year pricing of 6.3 percent. We continue to realise the benefits of the consistent investments in our people, fleet, footprint, technology and sales organisation at all points of the business cycle and this drove a 46 percent year-over-year increase in Adjusted EBITDA in the second quarter. Furthermore, improved results were widespread with all regions delivering double digit revenue growth."

"We see continued strengthening in the industrial markets and believe that the non-residential markets are bouncing along the bottom. We are benefiting from the consistent execution of our business model and associated market share gains, as well as increasing rental penetration. More and more customers are realising the benefits of renting equipment and we believe RSC is and will be the leading beneficiary of this trend. As a result, we expect continued favourable year-over-year comparisons in the third quarter and remain confident that these positive trends should continue throughout the year."