09.11.2008

H&E up 13%

Baton Rouge based rental company H&E, previously Head & Engquist, has reported nine month revenues of $807 million an increase of over 13 percent on the same period last year. Revenues were up in all areas including equipment rental, sales of both new and used equipment and parts and services.

Revenues in the third quarter were up just three percent to $278 million, while pre-tax profits for the period were down by 15 percent.

John Engquist, H&E’s president and chief executive said: "Our strong presence in regions with exposure to petrochemical, oil patch, mining and energy sectors and our integrated business model are clearly helping to minimise the impact to our business from the numerous macroeconomic issues occurring in the country today."

"There is no doubt the non-residential construction industry has slowed as a result of the unstable credit markets and other economic factors, yet our strong presence in the industrial sector resulted in solid financial performance during the third quarter."

"We believe our business is very well positioned to navigate the current conditions in the market. We have a strong balance sheet, are well capitalised and our debt carries a low interest rate and maturity dates well into the future. While we expect a difficult market to continue during the remainder of this year and into 2009 due to tight credit markets and economic slowdown, we are confident in our ability to make the necessary business adjustments to maximise our financial performance."

Leslie Magee, chief financial officer added "Our product support business continues to show strength. This segment of our business has historically performed very well during periods of economic softness. We remain committed to reducing our capital fleet expenditures which will generate additional free cash flow. We plan to use excess cash to reduce debt and/or repurchase shares.”