United Rentals doubles profits despite ‘difficult to predict’ recovery
By Murray Pollok20 July 2011
United Rentals more than doubled its second quarter net profits to US$27 million on revenues up 13% to $629 million, with a record time utilisation of 69% for a second quarter. The company said the figures defied a flat construction sector.
Rental revenues rose by 16% to $524 million, reflecting a 6.1% increase in rental rates over the same quarter a year ago and a 13.8% increase in volumes of equipment on rent. United said it was still forecasting a 5% increase in prices for the full year.
Michael Kneeland, chief executive officer of United Rentals, said, "Our strong numbers in the quarter defied a flat construction environment, and elevated our performance well above the same period last year."
Mr Kneeland said he expected a continued "robust" performance; "Although the recovery itself can be difficult to predict, our results are being propelled by a strategic plan that does not rely on our operating environment.
"We are continuing to shape our customer mix, fleet mix and operations in ways that create demand for our equipment now and in the long term."
United is forecasting gross capital expenditure on fleet this year to be around $650 million, which falls to $450-500 million net when sales of used fleet are taken into account.
In the first six months of the year the company made gross CapEx on fleet of $412 million, compared to $174 million in the first half of 2010.