Hertz Equipment Rental Corp (HERC), the equipment rental division of car rental specialist Hertz, has reported stable revenues-year-on-year for 2015 ahead of its planned spin-off from its parent company this year.
HERC reported rental revenues of US$1.44 billion (€1.32 billion) for the 12 months to the end of 2015 – slightly up on 2014’s rental revenues of US$1.43 billion (€1.31 billion). But adjusted 2015 pre-tax income stood at US$189 million (€174 million), down from US$258 million (€237 million) for the year before.
However, the company sold its equipment rental operations in France and Spain to Loxam at the end of 2015 – a transaction which resulted in a charge of US$51 million (€47 million).
Hertz said it continued to expect that the planned separation of HERC as a public company was on track for mid-2016.
In the fourth quarter, it said HERC continued to diversify its business, achieving a 42% increase in revenue from new accounts in North America on a constant currency basis.
Nevertheless, HERC also said it felt some pressure from the continuing decline in oil and gas markets in the final quarter of the year – a trend that it expected to continue into 2016.
HERZ has around 280 locations worldwide offering equipment and tools for rent and sale.