Herc Rentals grew its revenues by 21.3% to US$491.7 million in the final quarter of 2017. Net profits of $214.3 million benefitted from a one-of tax benefit of $207 million resulting from the US Tax Cuts and Jobs Act.
Annual revenues were up 12.8% to $1,499 million, with net profits of $160.3 million, including the $207 million tax benefit. This compares to a net loss of $19.7 million in 2016.
The company also announced that it had signed an agreement in January to sell its share of the rental joint venture in Saudi Arabia and Qater, but did not identified the buyer. Herc’s JV partner is Dayim Systems, a Saudi Arabia-based equipment, truck rental and security business.
Herc’s fourth quarter revenue increased reflected a larger fleet (3.6% larger on the basis of original equipment cost), a 3.0% average increase in pricing and dollar utilisation increased to 38.7% from 35.1%.
Larry Silber, HERC’s President and Chief Executive Officer, said; “Growth in rental revenue benefited from a combination of strong customer demand, improved fleet mix and pricing optimization as our strategic initiatives continue to focus on urban markets and customer diversification.
“The traction we are gaining with our own initiatives, together with the overall health of the economy and the potential for increased infrastructure spending and other investments resulting from tax reform, increase our confidence that we are on the right track.”