Integrated construction equipment distribution and rental firm H&E Equipment Services says its rental revenues increased 18 percent in its second quarter compared with the same time last year due to “strong physical utilization while continuing to expand the fleet” because of high demand.
The average time utilization, based on original equipment cost, was up almost 2 percent compared with a year ago, moving from 71 percent to 72.7 percent, and improved by almost 4 percent compared with the first quarter.
The company’s overall revenues increased 14.3 percent to $280.4 million, compared with $245.3 million a year ago. Average rental rates for the firm increased 2.1 percent compared with a year ago, and improved 1.8 percent from the first quarter. The average H&E fleet age continues to trend downward; it is now at 32.2 months, down from 34.4 months at the end of last quarter, and significantly younger than the overall industry average fleet age of 47 months, the firm says.
“We continued to capitalize on the improving trends in non-residential construction, especially the escalating activity in the energy and chemical sectors along the Gulf Coast,” said John Engquist, H&E CEO. “Our distribution business also continued to perform well, with new equipment sales increasing more than 20 percent and our combined parts and service business increasing 10 percent.”
Although not citing specific numbers, Engquist says the firm’s outlook remains positive for the balance of this year based on current trends and “high demand in our end-user markets.” The company has locations in 23 states, representing several brands, including Komatsu, Grove/Manitowoc, JLG and Bobcat.