Australian equipment rental company National Hire Group reports a decrease in fiscal first half profit, but said the decline was within the guidance presented at the company’s annual general meeting last year. Net profit dropped to AU $2.8 million (about U.S. $2.5 million) for the half year ended Dec. 31, compared with AU $15.3 million for the same period a year ago.
The company said the decline was caused primarily by the reduction in the share of profit from equity-accounted investments, including Coates Hire, which plummeted to AU $1.9 million compared with $12.3 million for the previous corresponding period. Coates Hire revenues were down 19 percent, the company said. Revenues from the Allight Equipment Sales and Support division also were down, although both companies generated strong cash flows, National Hire officials said.
The company estimated it has earned AU$30 million in pre-tax synergies from its acquisition of Coates Hire in 2008.