Oil and gas weakness impacts HERC first quarter

Continued weakness in North American oil and gas markets plus the sale of its French and Spanish rental businesses have led to an 8% revenue fall in the first quarter for Hertz Equipment Rental Corp (HERC).

The company reported pre-tax losses of US$12 million on revenues of $328 million. The first quarter of 2015 saw profits of $33 million on sales of $355 million.

Parent company Hertz Global said the planned separation of HERC from the car rental business remained on track for mid-2016.

Excluding the oil and gas downturn and the sale of the European business, and on a constant currency basis, HERC’s revenues increased by 12%, mainly because of new account growth and a 1% increase in pricing in non oil and gas markets.

Revenue from upstream oil and gas activities in North America represented around 18% of total revenues in the first quarter.

HERC president and CEO Larry Silber will give the keynote speech at the ALH Conference & Awards event in Miami on 11 October. See www.khl.com/alh-ca