21.02.2010

RSC down 27%

US rental company RSC has reported full year results for 2009 with revenues of $1.28 billion, down 27 percent on 2008. Rental revenues fell 31 percent to $1.1 billion.

The fourth quarter showed similar declines with revenues falling 32 percent to $290 million while rental revenues dipped 34 percent.

RSC posted a pre-tax loss for the year of $97 million, compared to a profit in 2008 of $195 million. The loss for the quarter was $46 million compared to a profit of $46 million in the last quarter of 2008.

The company generated a positive cash flow and managed to cut its massive debt burden to $2.17 billion form $2.6 billion last year.

Erik Olsson, chief executive said: "Strong and consistent execution on all aspects of our business enabled us to exceed our fourth quarter revenue, EBITDA, cost reductions and free cash flow expectations despite an economy that continued to be challenging.”

Full year cost reductions reached $174 million, which exceeded our stated goal of $150 million and contributed to an impressive full-year free cash flow of $395 million. As a result, we were able to further strengthen our balance sheet by reducing debt by $397 million."

"We believe we are now at or near the trough in the economic cycle. While the first half of 2010 will be challenging and a recovery in the construction segment will most likely lag an industrial recovery, economic trends including the uptick in industrial production and growth in GDP indicate that the markets served by the majority of our business are improving.”

“We expect to see gradual improvement in our business during the course of the year, given the normal two to three quarter lag between increasing economic activity and equipment demand. With our solid financial foundation, diversified client base, strong national presence and best-in-class operational discipline, we are well positioned to outperform in any cycle and be a leading beneficiary of an improved market."