30.03.2009

Ahern up 12%

Ahern Rentals of Las Vegas, one of the world’s largest aerial lift rental companies, has reported 2008 revenues up 12 percent to $381.6 million. Meanwhile net income slumped 69 percent to $6.7 million due to a $10 million increase in SG&A costs representing the expansion of its depot network to 50 locations, $2 million more in depreciation due to the larger fleet and $2 million more in interest charges.

The company has also reported that business in the first two months of 2009 has been tough with rental revenues down 17 percent on the same period in 2007 due to a 13 percent drop in rates and a 10 percent slip in utilisation to 56 percent.

Vertikal Comment

Ahern expanded rapidly in 2008 and then unfortunately saw a softening in some of its key markets such as Las Vegas. However it will be focusing on the mid to long term and aiming to pull through the recession intact, ready to continue its expansion programme as business picks up.

It does however carry a heavy debt burden and the worst possible time, in order to help increase sales the company has restructured its sales operation into four regions across the four time zones, each with regional vice presidents with responsibility for sales, operations and service.

The challenge now will be to take business away from its competitors without sacrificing rates. Not an easy task at the best of times. Ahern, a shrewd operator will be hoping that the recession will cause competitors to make mistakes and mismanage their sales efforts creating opportunities to be seized.