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Soft demand in the upstream oilandgas sector is the primary cause of HERC39s yearoveryear revenue decrease
Soft demand in the upstream oil-and-gas sector is the primary cause of HERC's year-over-year revenue decrease.

Hertz Equipment Rental Corp. Posts 7-Percent Q4 Rental Revenue Decline

Hertz Equipment Rental posted $386 million in fourth quarter worldwide equipment rental revenue, the company said, compared to $416 million in the fourth quarter of 2014, a 7-percent decrease. Excluding the unfavorable foreign currency impact of $10 million, revenue decreased 5 percent, driven by continued pressure in upstream oil and gas-related markets and the Oct. 30, 2015 sale of Hertz Equipment Rental operations in France and Spain.

Adjusted corporate EBITDA for the worldwide equipment rental segment for the fourth quarter was $166 million, a $12 million decline compared to the fourth quarter of 2014.

HERC continued to diversify its business, achieving a 42-percent increase in revenue from new accounts in North America on a constant currency basis in the fourth quarter. Also Hertz Global Holdings continues to expect that the planned separation of HERC as a public company is on track for mid-2016.

For the full year 2015, HERC posted $1.518 billion in the world wide equipment rental segment compared to $1.571 million in 2014, a 3.4-percent decrease.

For the full year 2016, Worldwide Equipment Rental segment preliminary 2016 adjusted corporate EBITDA guidance has been revised from a range of $625 million to $675 million to a range of $600 million to $650 million, because of expected continued pressure in the upstream oil-and-gas business.

HERC announced last week at The Rental Show its plans to change its name to Herc Rentals.

Based in Estero, Fla., Hertz Equipment Rental Corp. is No. 3 on the RER 100.

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