05.08.2009

H&E dips 30%

H & E Equipment, the Baton Rouge, Louisiana based crane, access and earthmoving equipment distributor has reported first half revenues of $366.4 million, just over 30 percent lower than the same period last year.

The biggest fall in percentage terms was sales of used equipment, down 60 percent, while sales of new equipment dropped 30 percent and rentals were down 28 percent to $105.5 million.

Pre tax profits dropped over 90 percent to $3.9 million

The second quarter showed steeper declines again, with revenues down 36 percent to $180 million. Rental was off by 33 percent, new sales by 40 percent and used equipment sales down by 57 percent.

Pre-tax profit for the quarter was $754,000 compared to $9.5 million last year.

H&E executive officer - John Engquist said: "The recession continues to heavily impact our non-residential construction and industrial end-markets. In spite of very weak demand for our products and services, we were able to remain profitable, increase liquidity and strengthen our balance sheet.”

“While business conditions did not improve during the second quarter, we are encouraged by some positive signs that we are seeing in the economy. The banking system appears to have stabilised and credit markets have improved. We are also encouraged by signs of stabilisation in the utilisation of our rental fleet. I believe we have successfully scaled our business to the current environment and are well positioned to take advantage of the recovery when it begins.”