Sunbelt Rentals reported strong third-quarter results for the three-month period ended Jan. 31, with revenues increasing 73 percent year over year to $361.5 million, the company’s U.K.-based parent company Ashtead plc announced last week. Sunbelt’s operating profit increased 39 percent for the quarter to $58.1 million, up from $41.8 million in the fiscal third quarter last year.
The numbers reflect Sunbelt’s acquisition of NationsRent in August 2006.
“The enlarged Sunbelt network of locations is working well together, focusing on improving our service levels to further differentiate ourselves in the market,” said Sunbelt president and CEO Cliff Miller. “We are pleased to see strong commercial construction activity in most of our markets and are confident that Sunbelt, as a much larger unified company, will continue to gain market share.”
Miller added that Sunbelt’s Pump and Power Division opened two new locations in the quarter — in San Diego and Houston — and plans to add four additional locations in the next six months. “Currently with 20 locations and moving to 24 locations servicing the pump and power generation markets, we are well positioned in this important rental sector,” Miller added.
Ashtead Group plc last week said it posted a lower third-quarter pretax profit than expected, primarily because of the ongoing costs of integrating NationsRent into the Sunbelt network. The group still expects a strong year because of strong performances in its three business units. Ashtead’s profits in the third quarter declined 11 percent. Chief executive Geoff Drabble said the third quarter is traditionally the company’s weakest and this year struggled in comparison with last year’s third quarter, in which results were boosted by post-Hurricane Katrina cleanup work.
Ashtead said profit before tax, amortization and exceptional items for the three-month period ended Jan. 31, was 11.3 million pounds (about U.S. $21.8 million). Revenue rose 48 percent to 240 million pounds (about $463 million U.S.).
Drabble added that the acquisition of NationsRent is proceeding to plan and would be essentially completed by the end of April.
Based in Charlotte, N.C., Sunbelt Rentals is No. 4 on the RER 100.
