United Rentals cites strong start for 1Q, will add $750 million in fleet this quarter
| April 17, 2014 |
United Rentals says it will bring in $750 million in fleet in the second quarter, the result of a strong 2014 start, with “notable year-over-year growth in rates, time utilization and volume,” according to CEO Michael Kneeland.
The company announced first quarter results Tuesday, saying rental revenue had increased 9.7 percent year-over-year. Total revenue was $1.178 billion, compared to $1.100 billion for the same period last year.
“Despite the headwind of a harsh winter, we strategically managed our business to capitalize on pockets of opportunity,” says Kneeland. “We now see solid demand in almost every market, giving us confidence in our full year outlook” of a 4 percent increase in rental rates. “The feeling in the field is upbeat—our customers and managers are bullish about business prospects, including the long-awaited recovery in commercial construction.”
Kneeland also cited as positives the integration of its National Pump acquisition and opening three new specialty branches in trench safety, power and HVAC.
United Rentals realized $110 million from used equipment sales, compared to $123 million in the first quarter of 2013.