12.11.2007

H&E up 21%

H&E equipment the Baton Rouge, Louisiana based sales and rental company, previously known as Head & Engquist, has reported a strong third quarter.

Revenues for the nine months to the end of September rose by 21 percent to $713 million, this included one month’s contribution from JW Burress the acquisition of which completed in early September.

Operating income increased 22 percent to $104 million while pre tax profits leapt by over 500 percent to $78 million, due in part to the fact that last years results were heavily affected by a $40 million penalty for the early retirement of long term debt. Without this penalty the improvement in earnings would have been just over 37 percent.

H&E saw revenues increase in all sectors of the business, including new equipment sales, rental, used equipment sales, parts sales and service income.

The company expects the year to remain positive and has upped its full year revenue forecasts to around $1 billion.

John Engquist, H&E president and chief executive officer said:” Our third quarter results were very solid across the board as all our major business segments delivered improved year-over-year performance. We continued to experience strong new equipment sales as the demand for cranes continued to increase."

"Our outlook for the remainder of 2007 is positive and as a result of the trends in our business, we are increasing our estimates for the year. We are excited about the opportunities as a result of the Burress acquisition; however, we do not expect that Burress will be accretive or dilutive to earnings for the remaining three month period of 2007."