PARK RIDGE, N.J. - Hertz Equipment Rental Corp. reported pretax income of $22.1 million on revenue of $269.1 million for the three months ended Sept. 30. Revenue was up 15.5 percent from $233.1 million in the same 1999 period, though pretax income fell almost 32 percent from $32.5 million.
The company, No. 3 on the RER 100, also reported that rental rates, down 4 percent in the first half of 2000, leveled off to a 1.1 percent decrease year-over-year.
Looking ahead, HERC said it expects worldwide equipment rental revenue to grow from 9 percent to 11 percent in 2001. To improve margins, the company said it has slowed its expansion activity and restructured staff.
HERC also said it will take a conservative approach to fleet purchasing in 2001 and will increase rates on high-utilization equipment where market conditions warrant, adding that "significant growth opportunities exist" in the shift to equipment rental as an alternative to ownership.