Rental Rumbles: June 2010

Green engines, software main topics at CRA Ontario meeting
Can two-stroke engines ever be “green”? According to Darrell Martin of Stihl they can. That was the focus of his presentation delivered at a recent meeting of the Ontario local chapter of the Canadian Rental Association (CRA).

Tom Sullivan of Stihl conducted the tour of the facility.

The meeting was held at the offices of Stihl in London, Ont., and brought together 40 rental professionals to talk shop and network. The evening included a tour of Stihl’s facility, during which attendees were treated to a demonstration of how parts are retrieved from their high-tech “vertical lift” machine and shipped. Each part is assigned a SKU, expressed as a bar code. To pull a part from stock, all that is needed is for a staff member to scan the bar code, and the system delivers a tray containing the appropriate part.

Darrell Martin of Stihl gave an overview of what the company has done to make its engines “greener.” Advertisement

After dinner, two speakers addressed attendees. The first was Darrell Martin, whose presentation on “green” two-stroke engines generated plenty of discussion. An essential part of this technology is something called “stratified scavenging,” which helps to reduce emissions.

Also presenting was Akshay Pandya of Pidex, who gave an overview of his company’s software solutions for rental houses.

Wajax opens Hamilton branch
Wajax has announced the opening of a new branch in Hamilton, Ont. The new branch officially opened its doors this month, and offers a full sales department, plus a complete parts and service department.

Joe Di Pede is the manager of the new branch in Hamilton.

Wajax carries a variety of equipment lines, for industries such as construction, forestry, mining and material handling. Manufacturers include Hitachi, JCB, Palfinger, Terex, Weldco and many more.

Wajax has more than 30 branch locations throughout Canada. The company celebrated its 150th anniversary in 2008. For more information, please visit www.wajax.ca .

Toro acquires certain assets of USPraxis
The Toro Company has announced it has acquired certain assets from USPraxis, Inc., a manufacturer of outdoor power equipment. Through the acquisition, Toro adds a dedicated lineup of stump grinders, wood chippers and log splitters to its product portfolio to strengthen its offering to the rental market.

“Toro has a rich history of offering innovative products for rental and landscape professionals, starting with the introduction of the Toro Dingo compact utility loader in the 1990s and continuing with the launch of our popular TRX walk-behind trenchers and new STX tracked stump grinder,” said Rick Rodier, general manager of Toro’s Sitework Systems Business. “USPraxis is an established brand in the rental industry known for innovative, high-quality professional products. The addition of these products allows Toro to continue to broaden and strengthen its compact equipment solutions for the rental and landscape markets.”

To complement the acquisition of these product lines, Toro also acquired, and will provide, a tip and blade sharpening service that offers a cost-effective way for rental stores to ensure their equipment is in optimum operating condition.

Moving forward, USPraxis products will be marketed under the Toro brand and sold through Toro’s compact utility equipment distribution channel in the United States and international markets.

USPraxis has a solid reputation for its lightweight cutting blades for stump grinding machines and for developing the industry’s first walk-behind stump grinder with specialty blades that reduce weight and optimize cutting action.

Ramrod Equipment celebrates 30 years
June 2010 marks the 30th anniversary of the Ramrod mini-skid loader. The “compact tool carrier” (CTC) category in North America was born in 1980 when the company introduced the Ramrod M230 at a regional farm show.

Ramrod offers a wide assortment of models with more capabilities than any other manufacturer in the category. The company offers several Ramrod models in both 4WD and Tracked configurations because they’ve learned from customers that different terrains require different solutions. Ramrod mini-skids can currently access more than 70 different attachments, with more attachments being added to the list all the time.

For more information on the entire Ramrod lineup, please call 800-667-1581 or visit www.ramrodequip.com .

Finning donates backhoe to Equipped for the Future program
By donating a Caterpillar 420 backhoe loader, along with a fee-free lease arrangement that keeps current equipment in the classroom, Finning (Canada) is investing in the future of students and the oil sands region.

Finning’s oil sands general manager Larry Gouthro and Keyano College president Jim Foote.

The loader is the first in-kind contribution to the Equipped for the Future program at Keyano College in Fort McMurray.

As a leader in heavy equipment training, Keyano College faces the challenge of continually needing to replace or renew equipment as technology changes. Angele Dobie, manager of fund development at the Keyano Foundation, says Finning’s donation goes a long way towards supporting this objective.

“We are delighted with Finning (Canada)’s leadership contribution to the initiative,” she said.

United Rentals announces first-quarter 2010 results
United Rentals has announced financial results for the first quarter of 2010. Total revenue was $478 million and rental revenue was $380 million, compared with $594 million and $448 million, respectively, for the same period last year.

On a GAAP EPS basis, the company reported a first-quarter 2010 net loss of $40 million, or $0.67 per diluted share, compared with a net loss of $19 million, or $0.32 per diluted share, for the same period in 2009. Adjusted EPS for the quarter, which excludes the impact of special items, was a loss of $0.57 per diluted share, compared with a loss of $0.32 per diluted share the prior year.

First-quarter 2010 highlights:
Free cash flow was $99 million, compared with $129 million for the same period last year. The company has raised its outlook for full-year free cash flow generation to a range of $200 million to $225 million, from its previous estimate of $175 million to $200 million.

SG&A expense decreased by $22 million, compared with last year. The company has raised its outlook for full-year SG&A expense reduction to a range of $40 million to $50 million, from its previous estimate of $25 million to $35 million.

Cost of equipment rentals, excluding depreciation, decreased by $19 million, compared with last year.
The company sold $77 million of fleet on an original equipment cost basis during the quarter and generated a used equipment gross margin of 31.4 per cent.

Time utilization increased 0.1 percentage points to 56.2 percent, reflecting an increase in demand for earthmoving equipment and a six per cent year-over-year reduction in total fleet based on original equipment cost, among other factors. Rental rates declined 6.5 per cent compared with last year. Dollar utilization, which reflects the impact of rental rates and time utilization, decreased 3.5 percentage points to 39.4 per cent.

Barry Ossea joins Point-of-Rental Systems
Point-of-Rental Systems has announced that Barry Ossea has joined the software provider’s team.

Barry Ossea.

Ossea has been in the rental software business for the last 20 years. He recommends that prospective purchasers “go back to basics” in evaluating their software choices before making a purchase.

“Ask your vendors for at least a dozen new customers that have had the product for less than a year, and at least a dozen that have had it for more than a year. Point-of-Rental includes a complete customer list with every proposal,” says Ossea. “What you really want to know is ‘How is support, and how did the conversion go?’”

Ossea welcomes all inquiries regarding what the latest features and must-haves are regarding rental software. He can be contacted at 1-800-944-7368 or via e-mail to barry@point-of-rental.com.

Gehl announces new VP of sales and marketing
Gehl Company (“Gehl”) has announced that it has promoted Serge Bosché to the position of VP sales and marketing, effective immediately. In his new assignment, Bosché will have responsibility for all sales and promotional activities in the Americas region for Gehl Company and Manitou B.F.

Serge Bosché.

Bosché joined the Gehl organization in February 2009 following the acquisition of Gehl Company by Manitou B.F. in October 2008. In addition to his new responsibilities, Bosché will continue to serve as the president and CEO of Manitou North America, Inc.

Husqvarna hires two for B.C. market
Husqvarna Construction Products Canada has announced that Gordon McCormack has joined the company as the new British Columbia territory sales manager.

Gord McCormack

McCormack joined the team at Husqvarna Construction Products Canada in April of this year and brings extensive sales experience to his new position.

In addition, Husqvarna has also announced that James Forsth has joined the company as the new technical service representative for British Columbia.

James Forsth

Forsth joined Husqvarna Construction Products Canada in March 2010. He will be responsible for managing all equipment service and supports activities for Husqvarna Construction Products in the British Columbia market.

For more information, please visit www.husqvarna.com .

Uniquip appoints new rep for eastern Quebec
Yves Pronovost, general manager for Uniquip Canada, is pleased to announce the appointment of Dave Pomerleau as sales representative for Quebec’s Eastern Region.

Dave Pomerleau

Dave Pomerleau, who has studied in sales and marketing, joins the Uniquip team after five years with Johnny Vac, a company specialized in maintenance equipment such as vacuum cleaners. Prior to that, he worked at Saputo and played hockey professionally in Europe for four years.

Pomerleau can be reached at at 418-998-5487 or at dpomerleau@uniquip.ca.

Yves Pronovost, directeur général d’Uniquip Canada est heureux d’annoncer la venue de M. Dave Pomerleau en tant que représentant pour la région de l’Est du Québec.

M. Pomerleau, qui possède des études en ventes et marketing, se joint à l’équipe d’Uniquip après 5 ans chez Johnny Vac, entreprise spécialisée dans les équipements d’entretien tels que les aspirateurs. Précédemment, il a travaillé chez Saputo et a joué professionnellement au hockey pendant 4 ans en Europe. Les clients d’Uniquip pourront compter sur l’expertise de M. Pomerleau. Il peut être joint au 418-998-5487 ou à l’adresse suivante: dpomerleau@uniquip.ca.