Thursday, October 20, 2011

Surging Utilization at United Rentals Bullish for Construction Equipment Providers


United Rentals (URIreported 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.

Read full article at Seeking Alpha. 

Disclosure: Long TEX. Please review the disclaimer page for more details. 


2 comments:

cement mixer said...

It seems to be a sustainable business model for the construction industry. I am interested to see gains posted after 2011.

crane hire perth said...

This trend will sustain its growth over the next few years, as the demands will remain stable if not get higher.