Herc Rentals has reported its first full-year revenues as an independent company, with annual revenues down around 4% to US$1353 million and final quarter sales flat at $357 million. The company, made a net loss for the year of $20.5 million compared to a net profit of $111.3 million in 2015.
The year on year comparison is impacted by the sale of the French and Spanish operations in the final quarter of 2015, which Herc reported as a $51 million gain in 2015.
The loss was the result of higher debt interest charges – more than doubling to $84 million for the full year – while $11.5 million of costs relating to the spin-off from Hertz Corp were booked in the final quarter of the year.
Herc said it had achieved 6.2% growth in what it called its key markets in the final quarter of the year, which more than offset the decline in oil and gas related revenues.
"This year was a critical milestone in our ongoing business transformation process," said Larry Silber, President and CEO. "Our strategy, which includes a number of initiatives, programs and actions, is beginning to show results on behalf of our customers, employees and shareholders.”
He added, “The ongoing shift in our fleet mix is positioning our business for long-term success. The rollout of our ProContractor Tools and ProSolutions equipment and services expands and diversifies our fleet and enhances our ability to provide a wide array of equipment to meet our customers' equipment needs.”
The company has scaled back its fleet of aerial booms, heavy earthmoving equipment and telehandlers, while increasing its fleet of scissor lifts and compact earthmoving equipment.
The company’s gross capital expensidure on fleet in 2016 was down 22% at $468.3 million.