27.07.2004

Rates up 8% at United Rentals

United Rentals, the world’s largest rental company has announced second quarter revenues of $776 million, an increase of 6.6 percent compared with the second quarter of 2003. Operating income for the second quarter rose by over 13 percent to $107 million, Adjusted net income for the period was $41.5 million compared to $23.4 million an 80 percent increase.

Financial utilisation for the second quarter was 60.1 percent, an increase of two percent on last year. The size of the rental fleet, as measured by the original equipment cost, was $3.7 billion at the end of June 2004 and the average age 39 months. The company does not anticipate this changing in the second half in spite of a significant increase in capital expenditure to $322 million for the first six months, compared to $266 million in the first half of 2003 and compared to a total spend in 2003 of $336 million.

First half revenues for 2004 were up 7.6 percent to $1.42 billion. Adjusted operating income for the same period rose by nine percent to $147.0 million. Adjusted net income for the six months was $35.6 million compared to $14.7 million in 2003..The Adjusted net income excludes exceptional charges of $101 million the GAAP reported result will be a loss for the first half of nearly $72 million, largely relating to the major debt refinancing that occurred in the period.

Rental rates for the second quarter increased 7.9 percent and same-store rental revenues increased 9.6 percent compared to 2003.

United Rentals, has a network of 730 rental locations in 47 states, seven Canadian provinces and Mexico, with 13,300 employees and over 600 different types of equipment with a total original cost of $3.7 billion.