HERC Revenues Drop 33 Percent in 2009

Hertz Equipment Rental Corp. posted $1.11 billion in worldwide equipment rental revenues for 2009, a 33-percent decrease compared with 2008, when total revenue was $1.658 billion. Worldwide equipment rental revenues were $274 million for the fourth quarter of 2009, a 26.1-percent decrease compared with the fourth quarter of 2008 when the company posted $370.7 million in the fourth quarter.

Adjusted pre-tax income for the fourth quarter of 2009 was $25.8 million, a 43.9-percent decrease from the same period in 2008, primarily the result of the effects of reduced volume and pricing, although the decline was partially offset by management’s cost-cutting initiatives. HERC achieved an adjusted pre-tax margin, based on revenues, of 9.4 percent, and a corporate EBITDA margin, based on revenues, of 40.5 percent for the quarter.

The average acquisition cost of rental equipment operated during the fourth quarter of 2009 decreased by 10 percent year over year, compared with a 10.8-percent decrease in the fourth quarter of 2008 compared with the same period in 2007.

HERC recently announced plans to expand its equipment rental operations in 2010, expecting to open about 10 new branches as part of a companywide strategy to tap into markets emerging from the recession as well as to provide onsite support to key industries such as the petrochemical industry. The Park Ridge, N.J.-based company is No. 4 on the RER 100. It has more than 330 locations in the United States, Canada, China and Europe, and recently announced plans for a joint venture in Saudi Arabia.

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