Rental rates and sales growth for Essex

Essex Rental Corp. has announced increases in rental rates and sales in its 2012 first quarter financial results.

The USA-based rental giant saw a 50.8% increase in new, used and rental equipment sales for the quarter, totalling US$6.2 million, compared to $4.1 million in the first quarter, 2011.

Similarly, rental rates also showed growth. Average monthly crawler crane rental rates increased $717 to US$16,233 for the three month period ending 31 March, 2012.

Rental demand for the company's fleet of crawler cranes increased to 37% for the quarter, said the company. Essex' rough terrain fleet saw utilisation hit 54.8%, while larger tower cranes and elevator lifts also improved, with some seeing usage above 60%.

Ron Schad, Essex president and CEO, attributed the increase in utilisation to growing demand from energy and petrochemical related customers located in the Gulf Coast region, central California and in the Pacific Northwest.

Equipment rental segment revenue, which represents 76.3% of total revenue, was $18.1 million in the first quarter, a 36.8% year-on-year increase. This was in part thanks to an increase in used rental equipment sales of $4.9 million.

Looking ahead, Schad forecasts improved demand and longer lease terms for crawler cranes, and increased utilisation of the company's rough terrain cranes and tower cranes.

Essex will continue to focus on the sale of rental fleet assets to reduce debt and rebalance its fleet mix.