Higher revenues but losses deepen at Noble Iron

Third quarter and nine-month results at US-based equipment rental company Noble Iron were mixed – it reported higher year-on-year revenues, but net losses continued to impact the business.

For the third quarter ended 30 September, 2014, revenues totalled US$5.8 million (€4.7 million), up from US$5 million (€4 million) a year ago.

For the first nine months of 2014, revenues increased 6.6% year-on-year to US$16.1 million (€12.9 million).

Revenues increased in the company’s construction and equipment rental and distribution division for the three and nine-month periods, and also increased for the third quarter in software division, but fell slightly in this division for the nine-month period.

Despite the stronger overall revenues, the company reported net losses for the third quarter and nine-month reporting period of US$1.7 million (€1.4 million) and US$4.4 million (€3.5 million).

These losses were deeper than the third quarter and nine month net losses of US$1.3 million (€1 million) and US$3.8 million(€3 million) that Noble Iron reported last year.

“The company’s net loss for the nine months ended September 30, 2014 was largely a result of increased depreciation and expenditures for fleet repair and maintenance incurred at the company’s California operation,” it said.

Noble Iron added that it chose to increase spending on fleet repair and maintenance rather than pursuing the disposal and replenishment of rental equipment fleet over the first nine months of the year at its Southern California operations.

“These expenses are expected to remain at higher than normal levels through the balance of the year, albeit at a declining rate,” it said, adding that capital expenditures for fleet additions at its Houston, Texas location continued as planned.