 A straight-mast rough-terrain forklift in the United Rentals inventory |
Equipment rental giant United Rentals Inc is willing to grow through acquisition but demonstrates significant discipline in placing its bets.
For the third quarter ended 30 September, United Rentals reports profit of USD192 million on sales of USD1.54 billion. That compares to profit of USD143 million on sales of USD1.31 billion for the comparable 2013 period.
"Our end markets are continuing to rally," says Michael Kneeland, chief executive officer. "Demand is up and we reported a robust 16% increase in rental revenue for the quarter. We accomplished this with record margin and adjusted EBITDA and year-over-year gains in volume, utilisation and rates."
Matthew Flannery, chief operating officer, says, "As we continue to tie our sales efforts to our fleet mix efforts, we'll see continued growth in both (the) scale of our other non-aerial, reach fork products, as well as returns."
The world's largest equipment rental company has an integrated network of 882 rental locations in 49 US states and 10 Canadian provinces, employs about 12,500 staff and offers rental of approximately 3,300 classes of equipment with a total original cost of USD8.61 billion.
Regarding potential acquisitions, William Plummer, chief financial officer, says United Rentals looks carefully at opportunities. "It's been an important part of how we've driven the company forward, but we're also very disciplined when we actually execute a transaction."
Plummer notes that numerous opportunities exist. "We've taken a look at the ones that make sense for us, and we'll continue to do that," he notes.
In a major deal in April 2012, United Rentals acquired 100% of the outstanding common shares and voting interest of RSC Holdings Inc of Scottsdale, Arizona for USD2.59 billion.
Flannery adds regarding acquisitions, "The bar is high for us, and we'll continue to keep that bar high."
Kneeland notes, "We are very disciplined in our approach and how we use Capex" for investment purposes.