Canadian Equipment Rental Fund, also known as 4-Way Equipment Rentals, based in Calgary, Alberta, Canada, posted CA $3.9 million in revenue in the first quarter (about U.S. $3.7 million), a 7.3-percent decline compared with CA $4.2 million for the same period in 2009. Income before income taxes was CA $506,321, compared with CA $927,963 for the same period a year ago, a 45-percent decrease.
Despite the declines, CERF president Wayne Wadley was optimistic about the company’s prospects for 2010.
“Early indications of an economic recovery cause us to believe that 2010 will be a better year for the partnership,” Wadley said. “According to the Edmonton Construction Association, there were 33-percent more posted projects between January and March 2010 as compared to the same period in 2009. We have seen a 12-percent increase in rental revenues for the quarter ended March 2010 compared to the quarter ended December 2009. Contractors are optimistic about the year ahead with further recovery anticipated towards the last quarter of 2010 and continuing into 2011. There is more activity in housing construction as the builders have sold most of their inventory and the threat of rising interest rates is motivating buyers.”
Wadley said CERF’s refractory customers are experiencing increased work levels with scheduled plant turnaround projects and some oilfield service clients are seeing renewed demand for their services. “Indications from commercial contractors are that bidding has increased and that the projects they are bidding on are more substantial than in 2009,” he added. “Federal government infrastructure spending is starting to take hold as the lag time for permitting and approvals have now passed and projects can advance to the building phase.”
Wadley added that the waste disposal and recycling business the company acquired in October 2009 is showing great promise, with high demand for recycling and disposal services.