Surging Utilization at United Rentals Bullish for Construction Equipment Providers
United Rentals (URI) reported record margins and utilization rates after the close yesterday. Though construction demand in the US remains weak, URI continues to report record numbers. Earnings of $.92 easily beat estimates of $.76.
Rental revenue increased 19% year-over-year due mainly to a 15% increase in volume. Time utilization was 73.5% and a record for the company. At that level, the company has very little down time for the large construction and industrial equipment it rents to construction and industrial customers, utilities, municipalities, homeowners, and others.