Coates Hire, Australia’s largest rental company, last week released earnings guidance for its various divisions. The general meeting might be the company’s last, since it agreed to be acquired last month by U.S.-based private equity group The Carlyle Group and Australian rental outfit National Hire.
Addressing shareholders in Sydney, managing director Malcolm Jackman said the company expected a strong first fiscal half for its northern division, but expected revenue to trail off in the second half because of monsoon-type rains. Still, the 42 branches in the division would deliver revenue growth of about 10 percent, Jackman said.
The eastern division also projected revenue growth of about 10 percent. The company’s southern division projected revenue growth of only 5 percent, but that was more than offset by the west, where 13.5 percent growth was forecast.
Coates’ Allied Equipment division, which hires and sells earthmoving equipment to mine operators, projects 15 percent revenue growth, while offshore growth was predicted at 40 percent. The company’s Indonesia division projected about 22 percent revenue growth.