United Rentals to maintain high spending
By Murray Pollok14 December 2018
United Rentals said it is likely to increase its gross expenditure on its fleet next year to between US$2.15 and $2.3 billion, marginally up from its $2.0-2.1 billion spending this year.
The company also said in its 2019 outlook guidance to investors that total revenues in 2019 would be as much as 20% higher at $9.15-9.55 billion, up from the guidance for this year of $7.89-7.99 billion. That would include a full-year contribution from BlueLine Rentals, its major acquisition this year.
Michael Kneeland, chief executive officer of United Rentals, said; “Our 2019 guidance reflects the healthy momentum we see going into year-end and our confidence that positive conditions will prevail in the coming year.
“Our five 2018 acquisitions have been successfully integrated, increasing the tailwinds in our gen-rent and specialty segments. We look forward to reporting our fourth quarter results on January 23.”
The company will resume its $1.25 billion share repurchase programme this month. The programme started in July 2018, with approximately $210 million of shares purchased by 30 September. Repurchasing was paused on 1 November to focus on the integration of BlueLine. United said it intends to complete the programme by the end of 2019.
The announcements and guidance were given at its annual investors day event, held in New York on 11 December.