RSC sees big turnaround in third quarter
By Associated Press
NewsOct. 28, 2011 - Equipment rental company RSC Holdings says it earned $15.8 million in the third quarter, up from a $6.4 million loss a year ago, as more customers decided to rent equipment like backhoes and forklifts instead of buying them. Earnings of 15 cents per share compare with a loss of 6 cents per share in the same quarter a year ago. Revenue rose 22 percent to $407.3 million.
RSC exceeded Wall Street's expectations. Analysts surveyed by
FactSet forecast earnings of 14 cents per share on revenue of $398
million.
RSC said rental volume was up 19 per cent and it was able to get
higher prices. The company, which serves non-residential construction,
industrial and manufacturing companies, said businesses are renting at
an accelerated pace since they don't want to commit the capital to get
their own equipment. A tighter credit market has also reduced their
ability to buy.
RSC, based in Scottsdale, Ariz., sees that trend continuing in
the fourth quarter and into 2012. The company has 452 branches in the
U.S. and Canada.
RSC shares rose 3.8 percent, or 38 cents, to close at $10.34.
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