09.03.2008

H&E boosts profits 250%

Baton Rouge based H&E Equipment, (previously Head&Engquist), the Crane, Access and earthmoving sales and rental company has reported revenues up 24.5% in 2007, while pre-tax profits jumped 250%.

The results include the fourth quarter of its JW. Burress acquisition but are largely driven by a stronger all round performance with increases in all areas of the business including sales, rental, used equipment and service.

Total revenues were just over $1 billion an increase of almost 25 percent on 2007. Rental revenues for the year were up 14 percent to $281 million, although dollar utilisation of the fleet slipped almost a percentage point to 40.3 percent due to the addition of the Burress business which is based on the traditional AED distributor model with its principal focus on sales rather than rent to rent.

Sales revenues climbed to $355 million, an increase of over 47 percent, while used equipment sales were up 11 percent to almost $149 million.

Profits before tax rose by 250 percent to 105.4 million, in spite of a number of one off ‘exceptional’ costs and charges.

The company is bullish about 2008 and expects revenues to rise by a further 13 to 16 percent. John Engquist, president and chief executive officer said: "Due to the continued strength of our end markets, we believe 2008 will be another solid growth year for H&E Equipment Services,"