Ashtead, parent company of Sunbelt Rentals and U.K. rental company A-Plant posted a 41-percent loss in pretax profits for its fiscal third quarter ended Jan. 31, although revenue grew 9 percent during the quarter. Underlying pretax profit was £11 million (about U.S. $15.5 million) compared with £18.7 million in the same period last year. Third-quarter revenue was £252.3 million (about U.S. $355.5 million), compared with £230.7 million for the year-ago period.
“As anticipated, market conditions became more difficult in Q3,” said Ashtead chief executive Geoff Drabble. “Revenues in both markets were adversely affected both by volume and yield, while we continued to benefit from the stronger dollar. Our strong market positions have also ensured a good relative performance and we anticipate continuing to gain market share.”
Drabble was optimistic that the stimulus package in the United States would provide a boost to Sunbelt Rentals. “The recently enacted U.S. infrastructure package will also help support our end markets, although we continue to be cautious as to the timing and likely quantum of the benefit,” he said. “We also anticipate that the recession will lead to both increased rental penetration and a greater market share for the larger, better financed rental companies such as ourselves.”
Sunbelt Rentals’ fiscal third-quarter revenue declined 15.1 percent from $362.7 million in Q308 to $307.9 in the recently concluded quarter. EBITDA suffered a 26.1-percent decline to $101.4 million, compared with $137.2 million in the year-ago period. Operating profit dropped 45.9 percent to $37.5 million, compared to $69.4 million in the previous year’s quarter.
Sunbelt decreased its fleet size 3 percent while physical utilization dropped from 66 percent in the year-ago quarter to 62 percent. Sunbelt’s rental revenues for the nine-month period dropped 3 percent to $1.06 billion.
Sunbelt Rentals, based in Fort Mill, S.C., is No. 4 on the RER 100. Ashtead Group plc is based in London.
