United Rentals Shows Q4 Slip in Rental Revenue
United Rentals reported a 3.2 percent decrease in year-over-year rental revenue for the fourth quarter of 2015. On a full-year basis, however, rental revenue was up 2.3 percent over 2014.
For the full year, the company noted, total and rental revenue, along with net income and other financial measurements set company records. Rental revenue for 2015 came in at $4.949 billion, compared to $4.819 billion in 2014. The fourth quarter rental revenue numbers were $1.278 billion in 2015 compared to $1.320 billion the previous year.
Full year numbers reflected a 3.2 percent increase in the volume of equipment on rent and 0.5 percent increase in rental rates. The Q4 rental rates siplipped 1.8 percent compared to year-earlier.
Company CEO Michael Kneeland provided this outlook for 2016: "Although we agree with industry forecasters that there is further growth ahead, there is still market uncertainty. For 2016, our stance is to be cautious on capex and proactive about pursuing profitable growth opportunities in areas such as our specialty rental services. In the first quarter, we plan to spend less than half of the capex we spent in the first quarter last year, and we’ll adjust our full year spend up or down based on the level of demand we experience."
The company is projecting total revenue to be between $5.65 and $5.95 billion, compared to $5.817 billion in 2015. They're also project a 1 percent to 2 percent decline in rental rates and a 0.7 percent increase in time utilization.
You can find their press release here.
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