26.04.2010

United dips 20%

United Rentals has announced first quarter revenues almost 20 percent lower at $478 million, while rental revenues fell 15 percent to $380 million.

The company posted a net loss of $40 million, compared to $19 million for the same period last year.

Physical utilisation improved marginally to 56.2 percent, reflecting an increase in demand for earthmoving equipment and a six percent reduction in the total fleet on the year, based on original equipment cost. Rental rates continued to decline though, falling a further 6.5 percent compared with the same period last year. Financial utilisation fell 3.5 percent to 39.4 percent.

The size of United’s rental fleet in terms of Original Equipment Cost, was $3.7 billion at the end of the quarter, compared to $3.8 billion at the start. The average age of the fleet was 44.1 months at the end of March compared with 42.4 months at the end of December.

Chief executive Michael Kneeland, said: “Twelve months ago, we were in the midst of an economic free fall in our end markets. Today, we see signs of a more positive outlook for our industry, with the foremost indicator being used equipment prices. We fought back against the economic and seasonal challenges of the first quarter by holding firm on time utilisation and mitigating the decline in rates. Our top line, while temporarily impacted by demand, reflects our shift toward a more optimal revenue mix. We are serving our most profitable customers more effectively and at lower cost."