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