31.07.2014

Profits jump at H&E

Louisiana based equipment distributor and rental company H&E Equipment Services has reported a strong improvement in second quarter and half year profits.

Total revenues for the first six months were $517.6 million an increase of 13 percent, with improvement in all sectors except for sales of used equipment which declined slightly. Pre-tax profits for the period were up more than 63 percent to $37.6 million.

Moving on to the second quarter revenues increased by 14.3 percent to $280.4 million while pre-tax profits climbed from $16 million last year to $25.4 million this year, an increase of over 59 percent.

Chief executive John Engquist said: “Our business performed well during the second quarter as we continued to capitalise on the improving trends in non-residential construction, especially the escalating activity in the energy and chemical sectors along the Gulf Coast. The momentum in our rental business continued as strong physical utilisation, combined with fleet investment and increased rates drove higher revenues and solid margin improvement. Our distribution business also continued to perform well, with new equipment sales increasing more than 20 percent and our combined parts and service business increasing more than 10 percent.”

“Our outlook remains positive for the balance of this year based on the current trends in our business and high demand in our end-user markets. With continued targeted investment in our fleet as well as pinpointed greenfield and organic expansion, we are extremely focused on delivering equipment where demand dictates and taking advantage of growth opportunities in the marketplace.”