02.11.2020

Solid performance from United

United Rentals has posted its third quarter results with revenues holding firm.

Total revenues for the nine months to the end of September were 10 percent lower at $6.25 billion, with pre-tax profits 30.5 percent lower at $752 million.

Third quarter revenues were 11 percent lower at $2.19 billion, with pre-tax profits of $2.75 million 29.5 percent below that achieved in the same quarter 2019. The company has also edged up its full year capital expenditure on rental equipment to between 900 to $950 million from its earlier forecasts of 800 to $900 million. However this compares to $2.1 billion last year.

The company expects the full year to come in at between $8.35 and $8.45 billion, compared to last year’s record $9.35 billion – a reduction of around 10 percent , but still five percent higher than in 2018.

Chief executive Matthew Flannery said: “We are pleased with our third quarter results, particularly our cost performance and the quarter over quarter improvement in fleet absorption. I am incredibly proud of our team as they continue to provide outstanding support to our customers, while maintaining a strong focus on safety and disciplined execution.”

“The recovery that we’ve seen since the spring has been evident in most of our markets with demand tracking to normal seasonal patterns. We expect current trends to continue and have raised our full year 2020 outlook for revenue, profitability and free cash flow. While the pace of the recovery remains uncertain, we are encouraged by the steady improvements we are seeing. Most importantly, we remain confident in our ability to execute well under any market conditions.”

Vertikal Comment

A very good result from United given the current crisis, it is a shame though that it is maintaining such a reduced level of investment on new equipment, especially given that its sales of used machines from its fleet is holding up well.