17.04.2014

United triples profits

US based United Rentals has reported a seven percent rise in first quarter revenues while more than tripling pre-tax profits.

Total revenues for the period were $1.18 billion, over seven percent higher than for the same period in 2013, rental revenue growth was even more impressive at 9.7 percent to just over $1 billion. Pre-tax profits for the period more than tripled, from $30 million in 2013 to $94 million this year. Physical utilisation grew by almost half a percent to 64.6 percent, which the company says keeps it on target for its full year plan of 68.5 percent.

Chief executive Michael Kneeland said: "We're off to a strong start in 2014, with notable year-over-year growth in rates, time utilisation and volume. Our adjusted EBITDA margin improved to over 44 percent, a first quarter record. Despite the headwind of a harsh winter, we strategically managed our business to capitalise on pockets of opportunity. We now see solid demand in almost every market, giving us further confidence in our full year outlook."

"The feeling in the field is upbeat -- our customers and managers are bullish about business prospects, including the long-awaited recovery in commercial construction. We plan to leverage our scale in this environment and bring in about $750 million of fleet in the second quarter. The integration of our National Pump acquisition is going well, and we've opened three new speciality branches in trench safety, power and HVAC. These are just a few of the many growth initiatives that will drive our short and long-term performance."

Vertikal Comment

This is another excellent start to the year from a major rental company and is particularly good in that the first quarter 2013 was also positive – so a strong comparative - while this year has seen some extreme weather in
much of United’s strongest regions.

The company looks well placed to break all records this year.