Strong pricing helps Herc in 3rd quarter
By Murray Pollok23 October 2019
Herc Rentals in the US said strong pricing helped it post a 2.4% increase in rental revenues to US$459.6 million for the third quarter of the year. Net profits fell to $9.4 million compared to $46.2 million in the third quarter of 2018, while EBITDA profits increased year on year by 3.9% to $209.4 million.
Herc said pricing increased 4.5% in the third quarter, the 14th consecutive quarter of year-over-year improvement. Dollar utilisation increased 160 basis points to 40.8%.
“The year-over-year improvement in our third quarter results reflect our continued focus on pricing and quality of earnings,” said Larry Silber, President and CEO.
“We improved pricing 4.5% and improved adjusted EBITDA margin by 220 basis points compared to the prior year’s third quarter.
“We have been taking a cautious approach regarding rental equipment expenditures and our balance sheet this year. Our ongoing focus on dollar utilization, along with strong end markets and positive expectations from national and local customers, support our 8% to 10% adjusted EBITDA growth assumptions for 2019, and form a solid base for improvement in 2020.”
Herc said its guidance on net fleet capital expenditure would be at the top of the top of the range provided earlier in the year.