North America fuels HERC double-digit growth
By Lindsey Anderson30 July 2012
Hertz Equipment Rental Corporation (HERC) reported worldwide equipment rental revenues of $335 million for its second quarter of 2012, up 11% year-over-year. HERC says this double-digit increase has been driven by North American demand.
The US alone saw an 18.8% revenue increase as North America overall saw a 15.2% increase, which is attributed to increased rental prices of 8.1%, increased volume, and "cost management initiatives," the company said.
Adjusted pre-tax income for worldwide equipment rental for the second quarter of 2012 was $42.5 million, an improvement of $9.1 million from the previous year's $33.4 million.
Worldwide equipment rental achieved an adjusted pre-tax margin of 12.7% and a Corporate EBITDA margin of 37.7% for the quarter. The average acquisition cost of rental equipment operated during the second quarter of 2012 increased by 8.1% year-over-year and net revenue earning equipment as of June 30, 2012 was $2,030.0 million, compared to $1,911.1 million as of March 31, 2012.
Mark Frissora, the company's chairman and chief executive officer, said, "We delivered strong revenue and earnings growth again in the second quarter of 2012, and achieved several record results, despite moderate global GDP growth. Our second quarter 2012 results are a testament to fostering a culture of continuous improvement..."