United Rentals finishes 2011 with strong quarter
27 January 2012
United Rentals finished 2011 with another strong quarter, reporting total revenues up 25% to US$746 million and net profits of $29 million, reversing the $17 million loss in the same quarter of 2010.
The company said the results were driven by a 6.7% increase in rental rates year-on-year and because there was 15.1% more equipment on rent in the final quarter. Time utilisation was up 1.5% percentage points to 70.8% in the three month period - a record for the quarter.
Results for the full year saw United generate revenues of $2611 million, up 16%, and post net profits of $101 million, compared to a $26 million net loss in 2010.
The company, which announced its intention to acquire RSC Equipment Rental in mid-December, said the outlook for 2012 for United alone was for continued growth in rental prices (forecast to rise by 5%) and utilisation (up around 0.5% percentage points).
United is planning to increase its capital investment again this year to around $1 billion (gross), which compares to $774 million in 2011 and $346 million in 2010.
Michael Kneeland, chief executive officer of United Rentals, said the quarter had marked a "strong end to a stellar year for our company, particularly in light of the sluggish economy."
He said the "fundamentals of our growth are rock solid: our strategic focus on customer service excellence, rigorous efficiency and rental rate expansion...we are in an excellent position to capitalize on the emerging up-cycle as well as the broader secular shift toward equipment rental."
Mr Kneeland added that he expected 2012 to be transformative year for United Rentals; "We're making good progress on all fronts toward our intended acquisition of RSC and the integration planning."
