RSC reports "very strong" momentum and optimism for 2012
By Murray Pollok21 October 2011
RSC Equipment Rental said it was building "very strong" business momentum with customers reacting to the lack of finance and moderate economic growth by outsourcing more of their equipment needs to rental companies.
It said it expected this outsourcing trend to provide "significant growth opportunities" in 2012.
The company reported a 21.8% increase in revenues to US$407 million for the third quarter of the year and net profits of $16 million compared to a net loss of $6 million for the same period last year.
All of its regions posted double digit revenue growth, with rental volumes increasing 19.0% year-on-year, rental rates improving 1% sequentially and 4.6% year-on-year, and average fleet utilisation up 3.8 percentage points to 73%.
Erik Olsson, president and chief executive officer, commented: "We see the current economic environment with low GDP growth playing perfectly into the value proposition of renting and to RSC, in particular. As a result, we produced an impressive 19% volume growth, while at the same time generating positive year-over-year pricing of 4.6%."
He said RSC expected to make a strong finish to the year; "We see continued growing demand from our end markets and are benefiting from the consistent execution of our business model with market share gains as well as increasing outsourcing of equipment needs.
"As a result, we believe an economic environment with low to medium rate GDP growth will be favourable to renting equipment and provide significant growth opportunities also in the coming year."