11.03.2014

H&E up 17.5%

US based distribution and rental company H&E has published its 2013 results which show revenues up more than 17.5 percent, while profits jumped almost 50 percent.

Total revenues for the year were $987.8 million, 17.5 percent up on 2012, while pre-tax profits came in at $65.1 million, almost 47 percent up on the year.

Looking at the fourth quarter, revenues improved by a more modest 3.8 percent, while pre-tax profits increased by 26 percent to $21.2 million. All sectors of the business posted gains, while rental utilisation edged up slightly to 71.9 percent compared to 71.8 percent in 2012. Rental rates increased by 5.6 percent and the average age of the fleet was cut from 38 months to 34.9 months.

Chief executive John Engquist said: “Our fourth quarter performance demonstrated across the board strength and momentum that has continued in our business. Demand for rental equipment was strong in the fourth quarter, driving higher consolidated margins and strong utilisation even while operating a significantly larger fleet. Our combined distribution business remained solid as well, despite a lower level of year-end buying of certain new cranes from a year ago, which we believe was the result of reduced year-end tax incentives. We see our continued focus on leveraging the increasing demand in our end user markets and our operational efficiency reflected in our financial results for the quarter.”

“We believe 2013 was a year of success and our outlook for 2014 is also positive as we believe there will be significant recovery in non-residential construction over the next several years. We feel there is reason to be optimistic regarding the outlook for our rental business given the demand we are currently experiencing. From our perspective, end-user demand for new and used equipment remains high and we expect this trend to continue based on current activity levels. We are increasing our fleet size to accommodate this anticipated growth. We also expect to benefit from the industrial markets we serve, particularly along the Gulf Coast, where we see the petrochemical, oil patch, refining, manufacturing and other related industries operating at high capacity levels. It is being reported that capital spending scheduled to begin in 2014 relating to these industries, particularly in our Louisiana and Texas markets, may hit historically high levels. We believe overall market conditions are encouraging, and we will continue to focus on solid execution and improving our market position to capitalize on all of these positive trends in 2014.”