01.03.2009

United drops 12%

United Rentals, the worlds largest rental company and aerial lift fleet owner, has reported full year revenues for 2008 of $3.27 billion, 12 percent down on last year. Rental revenues held up better, falling just under six percent to $2.5 billion.

The company reported a pre tax loss of $813 million compared to a pre-tax profit last year of $578 million. Most of this was due to a %1.15 billion goodwill impairment/write off and the $14 million cost of settling its SEC investigation. Without these two exceptionals the company would have made a pre tax profit of $348 million, roughly 40 percent down on the same period in 2007.

The fourth quarter shows as steeper decline in revenues, with rental revenue down 11.9 percent and overall revenues down 14.5 percent.

Chief executive Michael Kneeland, said: “Our 2008 performance reflects our ability to pull the key levers that are within our control, especially our cost structure, liquidity and fleet performance, to confront a challenging environment. Despite weak end markets as the year progressed, we succeeded in increasing our full year cash flow, pro forma EBITDA margin and SG&A ratio. These improvements are the result of a disciplined internal plan designed to ensure short-term stability and long-term growth.”

The company said that it had closed or merged 43 branches in the fourth quarter, 13 more than planned and brining the total closed for the year to 75 locations, while the head count was cut by 1,000.

United says that it will suspend issuing formal guidance due to continued uncertainty in the macro-economy and the impact of the credit environment on the company’s customers.