05.05.2014

H&E doubles profits

US crane, access and telehandler sales and rental company H&E Equipment has reported a strong first quarter.

Total revenues improved 11.7 percent to $237.3 million, with improvements in both rentals - up more than 14 percent - and new equipment sales. Pre-tax profit almost doubled, rising from $6.9 million in the same period last year to $12.2 million this year.

Rental utilisation moved up from 63.6 percent last year to 64.5 percent this year, while rates improved 2.5 percent. The average age of the fleet was 34.4 months.

Chief executive John Engquist said: “Our first quarter results were strong as we delivered solid increases in revenue and EBITDA as a result of continued strength in our rental and distribution businesses. Despite challenging weather conditions earlier in the year, rental revenues increased 14.4 percent compared to a year ago on a 45.2 percent margin, and new equipment sales grew 30.4 percent compared to a year ago as demand for cranes and earthmoving was high. We are extremely pleased with such a solid start to the year.”

“Our outlook for this year is positive as we see the recovery in commercial construction is gaining momentum. Customer demand accelerated significantly in March and current construction activity is outpacing year-ago levels across all of our key markets, including our less industrial focused regions. We believe significant growth opportunities continue to exist in the markets we serve. Through our continued focus on strong execution and providing our customers with the highest level of support, we expect continued market penetration and growth during the rest of 2014.”