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18.6-Percent U.S. Rental Revenue Jump Drives HERC’s Third Quarter

Worldwide equipment rental revenues for Hertz Equipment Rental Corp. were $363 million for the third quarter, a 12.8-percent increase compared with the third quarter of 2011. The increase was driven by an 18.6-percent revenue leap in the United States and 17.1 percent in North America.

Hertz Global Holdings reported third-quarter 2012 worldwide revenues of $2.5 billion, a 3.4-percent year-over-year increase.

“HERC’s 18.6-percent U.S. revenue growth in the third quarter easily outpaced the competition as we gained momentum in new markets and with new fleet,” said Hertz chairman and CEO Mark Frissora. “Overall in North America, the 17.1-percent revenue improvement benefited from robust oil and gas activity, the Gulf Coast clean-up after Hurricane Isaac, strong growth in our Entertainment Services business, especially from Cinelease and the continuation of industrial projects.

“In North America and the U.S., our equipment rental pricing was up 3.8 percent and 4.5 percent, respectively, in the quarter. Of total U.S. equipment rental revenue, 52 percent came from national accounts in the third quarter where competitive pressure is increasing. While this is a higher contribution to more stable business, the contracts limit our ability to raise prices opportunistically. Regardless, we moved national account pricing up 2.4 percent over the sequential second quarter. In terms of noncontract accounts we secured 6.9 percent domestic price increases over the third quarter 2011 and a 2.2-percent increase over the sequential second quarter.”

Adjusted pre-tax income for worldwide equipment rental for the quarter was $76.2 million, an improvement of $20.3 million compared to $55.9 million for the third quarter of 2011, as a result of increased volume, improved pricing and cost-management initiatives.

During the quarter, HERC acquired Ponca City, Okla.-based Pioneer Rental, strengthening its position in the growing regional gas, oil and industrial markets. Also during the quarter, HERC closed an agreement to open an equipment rental franchise with a partner in Chile, which, HERC said, is a roughly $165 million equipment rental market. It’s the company’s first penetration into the South American marketplace.

Based in Park Ridge, N.J., HERC is No. 4 on the RER 100.

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