KHL Group - Access International

RSC predicts "strong 2012" after 23% increase in 2011

Written by Murray Pollok - 27 Jan 2012

RSC Equipment Rental said it was expecting a "strong 2012" after releasing positive results for the fourth quarter of 2011, with rental revenues up 27% to US$364 million and total revenues increasing 24% to $421 million. Full year revenues rose 23.3% to $1522 million.

RSC, which is in the process of being acquired by United Rentals, made a net loss on the full year of $30 million, compared with a net loss of $74 million a year ago. However, this year's loss includes a $49 million pre-tax charge from refinancing activities undertaken in the first quarter of 2011 as well as an $11 million pre-tax charge related to the United acquisition.

Like United, RSC reported increased volume and pricing. Volume was up 20.7% year on year and rental rates were 6.5% higher compared to the fourth quarter of 2010 and up 4.5% from the third quarter of 2011.

Erik Olsson, president and chief executive officer, said it had been a strong quarter and added that "improved results were widespread with all regions delivering double-digit revenue growth and significant increases in utilization and profitability. I am very pleased with this strong finish to a great 2011, which supports our view of a strong 2012."

RSC's results were published on the same day that United Rentals posted similarly strong results. United is in the process of acquiring RSC, a transaction that is expected to complete before the middle of this year.