United Rentals reports strong third quarter and 'bullish' customers

United Rentals reported a 178.8% rise in revenues to US$713 million for the third quarter of 2011, with net profits almost tripling to $65 million.

Rental revenues were up 19.1%, reflecting year-on-year increases of 7.5% on rental prices and 15% on the volume of equipment on rent. Time utilisation increased by 2.2% percentage points to 73.5%.

Michael Kneeland, chief executive officer of United Rentals, said the results were evidence that its strategy of "customer segmentation, price optimisation, customer service differentiation and cost efficiency" was working; "This has put us in a position to act decisively on growth opportunities, such as the $219 million we
invested in fleet in the quarter."

Mr Kneeland said its customers "remain bullish about construction activity next year and there is a deepening belief in rental penetration". He said the company's business model gave it the flexibility to respond "to anything we may experience in 2012."

The company said it will invest approximately $775 million gross in its fleet this year.