20.05.2015

Flat revenues at Hertz

Hertz Equipment Rental has published its revenue numbers for the first quarter. They show a one percent decline in overall revenues to $355 million, however if currency fluctuations are excluded the company actually increased revenues by around two percent while rental revenues improved three percent. The company is still working on the restatement of its previous accounts and as such cannot provide final data on the its profitability during the period.

The company said: “In North America in the first quarter, total equipment rental revenue remained flat at $334 million year-over-year, but was three percent higher excluding currency effects. Revenue growth was tempered by accelerating weakness in oil and gas regions as well as a lower level of new equipment and parts sales. Of total North American equipment rental revenue, the U.S. represented 82 percent with Canada making up the balance”.

“North America rental and rental-related revenue increased one percent, but was up three percent excluding currency effects. Volume in North America increased four percent in the first quarter. Equipment rental pricing was two percent higher compared with the 2014 first quarter. North American time utilisation was 62 percent, which was flat year over year. Upstream oil and gas revenue represented roughly 15 percent of North American equipment rental and rental-related revenue in the first quarter”.

Chief executive Brian MacDonald added: "The pressure from upstream oil and gas weakness came on faster than our internal forecast, impacting both revenue and profitability in the latest quarter. Our exposure in Northern Alberta, West Texas and Oklahoma is overshadowing the progress we have made in diversifying our top line into growth markets. As a result, we are reducing operating costs and capital spending to reflect our revised demand outlook."