HERC volumes up but currency hits revenues
By Steve Ducker11 August 2015
Hertz Equipment Rental Corporation has reported total worldwide equipment rental revenues of $375 million (€339 million) for the second quarter of 2015. This was 2% down on 2014.
Revenue was negatively affected by accelerating weakness in upstream oil and gas markets during the quarter, but excluding the effects of foreign currency it was up 1% on the previous year.
Worldwide revenues for the second quarter were favorably impacted by a 2% increase in worldwide equipment rental volumes. The increase in volume was driven by new account growth, predominantly from small local contractors and speciality segments. Pricing for the second quarter was up 1% year-on-year.
Worldwide equipment rental adjusted pre-tax income for the second quarter of 2015 was $42 million (€38 million), a decrease of $25 million (€22.5 million) year-on-year. Corporate EBITDA for the worldwide equipment rental segment for the second quarter of 2015 was $147 million (€133 million), against $166 million (€150 million) in the same quarter last year.
Hertz Global Holdings recently said its proposed spin off of the equipment rental division would be completed by the second quarter of 2016. CEO Larry Silber was appointed in May to oversee the process.