HERC operating profits up 69% in first quarter

Hertz Equipment Rental Corp (HERC) reported a 16.2% increase in revenues to US$351 million in its first quarter with operating profits up 69% to $28.9 million.

Worldwide revenues increased by 16.2% year on year, with an 18.6% rental revenue increase in North America.

The results were driven by a 15.7% increase in the volume of business – primarily down to strong industrial revenues and improving construction - and a 3.6% increase in pricing.

The HERC results came in a quarter in which Hertz reported record total revenues and pre-tax profits.

“Our record first quarter 2013 results were driven by year-over-year, double-digit revenue and pre-tax margin growth in the car and equipment rental and leasing businesses, especially in North America.”, said Mark Frissora, chairman and chief executive officer.

Hertz does not split out detailed financial by region for its HERC business, but earlier this month at an investors’ day event it revealed that North America represented 91% of last year’s $1.4 billion revenues at HERC, with Europe representing 7%. Both its Chinese and Saudi Arabia operations represented 1% of total revenues, around $14 million each.