US-based rental company United Rentals reported revenues of US$1.36 billion (€1.26 billion) for the first quarter of 2017 – a year-on-year increase of 3.8%.
Its rental revenues were up 4.5% to US$1.16 billion (€1.08 billion) for the quarter, compared with US$1.11 billion (€1.03 billion).
The company’s net income for the first quarter was US$109 million (€101.33 million), up 18.4%, compared with US$92 million (€85.53 million).
Michael Kneeland, CEO of United Rentals, said, “We were pleased with our momentum in the first quarter, particularly our 7% growth in volume and record time utilisation driven by strength in our core construction markets.
“It was also encouraging to see positive trends in our upstream oil and gas business after the headwinds faced over the last several years.”
Mr Kneeland added that, while the company’s rental rates remained under some pressure, they continued to support its reaffirmed standalone 2017 guidance for total revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and capital spending, as well as its increased guidance for free cash flow.
Mr Kneeland continued, “As we enter the critical part of the construction season, we’re very encouraged by the continued strength of key leading indicators, the tone of conversations with our customers and the industry’s disciplined response in adding fleet.
“Our focus remains on implementation of Project XL and other initiatives that should enhance our long-term value.
He said that with the integration of NES Rentals now underway, United’s updated guidance reflected the combined operations for the remainder of 2017, as well as its sustained confidence in the cycle.
Looking ahead, the company said it expected to record revenues of between US$6.05 billion (€5.62 billion) and US$6.25 billion (€5.81 billion) for 2017, up from its original outlook of between US$5.75 billion (€5.35 billion) and US$5.95 billion (€5.53 billion). This improved outlook comes as a result of United’s acquisition of NES Rentals, which it purchased for US$965 million (€897.13 million).
Adjusted EBITDA is expected to be between US$2.84 billion (€2.64 billion) and US$2.99 billion (€2.78 billion).