Drop in revenues for HERC

By Helen Wright10 November 2015

Hertz Equipment Rental Corp (HERC), the equipment rental division of car rental specialist Hertz, has reported lower earnings and revenues for the third quarter of 2015.

Hertz said total worldwide equipment rental revenues stood at US$401 million (€373 million) in the three months to 30 September, down 3% year-on-year. However, the company said that excluding the impact of foreign currency, these revenues increased 1%.

It said worldwide revenues for the third quarter were boosted by a 3% increase in equipment rental volumes, driven by demand from small local contractors and specialty segments as HERC diversifies its business.

HERC’s revenues were also negatively affected by continuing weak performance in serving upstream oil and gas markets during the quarter – in North America, for example, revenue in these upstream oil and gas markets decreased 26% year-on-year, while non-oil and gas markets revenue increased 14%.

In response to the continued weakness in oil and gas markets, HERC reduced its equipment fleet in this segment by 16% in the third quarter year-over-year.

HERC’s third quarter adjusted pre-tax income for the third quarter was US$54 million (€50 million), a decrease from US$79 million (€73 million) in the prior year period.

Hertz CEO John Tague said the company was making progress on its preparations to separate HERC as a stand-alone company.

At the start of November, Hertz sold HERC’s French and Spanish business to French rental company Loxam.

HERC confirmed its full-year adjusted earnings before interest, tax, depreciation and amortisation guidance of between US$575 million (€535 million) and US$625 million (€582 million).

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Access International Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Loxam accelerates environmental shift
Equipment rental company aims to halve direct emissions by 2030 and cut indirect emissions by 30%
10 ways to join the hydrogen power revolution
Interest in the use of hydrogen has soared over the past few years as the construction industry races to reduce its carbon footprint. We roundup some recent initiatives
Sinoboom agrees TVH deal
Deal will see parts and service supplied to all Sinoboom’s geographical operations.
CONNECT WITH THE TEAM
Euan Youdale Editor, Access International Tel: +44 (0)1892 786 214 E-mail: euan.youdale@khl.com
Ollie Hodges Sales Manager Tel: +44 (0)1892 786253 E-mail: ollie.hodges@khl.com
CONNECT WITH SOCIAL MEDIA