04.11.2013

Profits quadruple at H&E

Louisiana based crane and access dealer H&E Equipment has reported strong growth in profits for the nine months to the end of September.

Total revenues for the nine months were up 24 percent to $728.2, while pre-tax profits jumped almost 59 percent to $43.95 million. Revenues were up in all areas of the business, but were particularly strong in new machines sales, used machine sales and rental. Parts and service revenues were generally flat.

Looking at the third quarter, revenues improved 32 percent to $270.5 million with rental up 15 percent on higher rental rates, and new sales up by more than 84 percent, albeit from a low level last year. Pre-tax profits almost quadrupled compared to the same quarter last year to $21 million.

Chief executive John Engquist said: “Our business performed exceptionally well during the third quarter as a result of our continued focus on solid execution, capitalising on market cycle expansion and strong industrial market penetration. Total revenues increased significantly, up 32.2 percent from a year ago, primarily due to on-going strength in our rental and new equipment businesses. Rental revenues grew 14.9 percent on rates that were 5.2 percent higher than a year ago and on a significantly larger fleet. New and used equipment sales increased 84.1 percent and 47.2 percent, respectively, which we believe affirms a healthier economy and general construction market.”

“We believe the positive trends that we are seeing in our business will continue through the balance of this year and into 2014, where we anticipate additional fleet growth and market expansion in our industrial markets, where we believe there will be continued high demand, and in the commercial construction sector, where we believe there will be expanding opportunities.”

Vertikal Comment

An excellent set of numbers from H&E, but what is most encouraging is the rebound in new equipment sales, which demonstrates the returning confidence of contractors and other buyers, encouraging them to invest in new equipment.