Gaining momentum in rental and distribution businesses, H&E Equipment Services is reporting a hefty 20.6 percent gain in revenues to $294.7 million for the fourth quarter of 2017.
That compares to $244.3 million for the fourth quarter of 2016, the company says.
Net income was $85.9 million in the fourth quarter, compared to net income of $12.4 million a year earlier.
“The non-residential construction markets were exceptionally strong, resulting in extremely high demand for rental equipment,” says CEO John Engquist. “Physical utilization increased nearly 400 basis points to 74.2 percent for the quarter, and we achieved a one percent increase in rates from the prior year.”
“Rental revenue increased 10.9 percent, and margins increased 330 basis points to 51 percent, compared to the year-ago quarter,” Engquist adds. “Increased demand for new cranes and earthmoving equipment drove a 65.9 percent improvement in new equipment sales.”
This quarter’s results continue the acceleration reported last October, when the improvement in new equipment was largely due to higher new crane sales, which rose by 29.6 percent, or $5.6 million, to $24.3 million for third quarter 2017, compared to that period in 2016.
Ongoing relatively low demand for cranes has posed a challenge to the new equipment sales component of the distribution business, but this company and others anticipate improvement in the crane market in 2018. And there are other positive signs.
