02.11.2009

RSC falls 33% but cash improves

US rental company RSC has reported a 33% fall in third quarter revenues but beats its cash forecasts.

Total revenues for the third quarter were $316 million almost 33 percent lower than for the same period in 2008. Rental revenues fared slightly worse declining 35 percent.

The company posted a pre –tax loss of $12.5 million compared with a profit of $61.7 million during the same period last year. Utilisation fell from 72 percent in 2008 to 59 percent, but edged up almost a full percentage point on the year to date numbers.

Year to date revenues fell 26 percent to $993 million, with a pre-tax loss of $451 million compared to a profit of $164 million.

Chief executive Erik Olsson said: “We executed well on our top priorities – customer service, cost controls and cash flow generation. While we did not experience the typical seasonal upturn in volume, we achieved stability throughout the quarter in demand for our fleet, sequential rental rates and utilisation.”

“We delivered an impressive $125 million of free cash flow, clearly demonstrating the results of strong execution and the counter-cyclicality of our business model. Although the economic environment remains weak, we expect to deliver free cash flow of $365 - $380 million for the full year, which is above our previous estimate.”