Australian rental giant Coates Hire reported a disappointing net profit of AU $46.5 million (about U.S. $36.8 million) for fiscal first half ended Dec. 31, a 6 percent year-over-year decrease. At the same time, Coates CEO Malcolm Jackman said the company expected an improvement over the next year, predicting its operating earnings would rise by 13 to 17 percent this year.

Coates said the first half net profit decline was because of a one-off tax benefit in the previous corresponding period. Excluding the tax benefit, the company’s net operating profit increased 8 percent.

Coates’ EBITDA increased 14.6 percent to $149 million (U.S. $117.9 million) in the six-month period, with sales revenue rising 9.5 percent to AU $377 million (U.S. $298.5 million).