CHICAGO — NES Rentals announced rental revenue of $119 million for the third quarter, a 9-percent increase from the $109 million posted for the same period last year. Total revenues were $163 million, a 2 percent year-over-year increase. Same store general rental revenues increased 8 percent from Q304.
Revenue from new and used equipment sales, parts, supplies and services improved 10 percent from $40 million in Q304 to $44 million for this year's third quarter.
Operating income for the general rental and traffic safety divisions increased from a $2 million loss in the third quarter of 2004 to an $18 million gain. During the quarter, NES Rentals generated $19 million of cash from operations, a $12 million jump from the same period in 2004.
“Our continued improvement in the third quarter can be credited to a number of factors,” said Andrew Studdert, chairman and CEO of NES Rentals. “Industry conditions are improving in both the non-residential construction and industrial sectors we serve, and rental rates continue to improve. We have, and will continue to realize, benefits from cost management and operating efficiencies across the company. Our fleet management tools have been enhanced, allowing us to strategically place our equipment in those geographies and market segments with the greatest demand.”
Studdert added that expected increases in spending in the non-residential construction sector would benefit the company's traffic safety division.
Based in Chicago, NES Rentals is No. 5 on the RER 100.