22.04.2012

RSC up 24.8%

US rental company RSC has announced its first quarter results, with revenues up almost 25 percent and a return to profit.

Total revenues were $408.1 million, 24.8 percent higher than the same quarter last year, thanks to an 8.2 percent improvement in rates plus a 19 percent jump in rental volume. Utilisation for the quarter was 67 percent. The company generated a pre-tax profit of $17.8 million, compared to an $80.5 million loss in the same quarter last year. Capital expenditure was $145 million for the quarter.

Chief executive Erik Olsson said: "I could not be more proud of how our employees have performed in this quarter, delivering strong results while dealing with the integration planning for the pending merger. Thanks to great leadership at all levels the pre-merger planning is going very well and is not being allowed to be a major distraction for us."

The merger with United is subject to a shareholder vote on April 27th and if favourable the deal is likely to move ahead at month end.

Vertikal Comment

A very positive and substantial bounce back for RSC, just before it concludes the takeover deal with United Rentals. It is surprising how similar the improvement percentages are to its future partner.