NES Reports Improved Revenues and Rental Rates

December 1, 2004—NES Rentals, Chicago, Ill., reported an increase of 4 percent in consolidated revenues for this third quarter over one year ago due in part to increased rental rates.

 

A steady improvement in private, non-residential construction activity in the company's markets helped drive greater revenues from equipment rentals and related services. Rental revenue for the quarter increased 5 percent to $139 million from $132 million during the third quarter of 2003. Importantly, rental rates on the company's largest classes of fleet increased 9 percent year-over-year. Physical utilization of that fleet — which was strategically reduced by 5 percent during the past nine months — increased 2 percent over the third quarter of 2003.

 

Adding to the company's year-to-date performance were strong revenues in its Traffic Safety segment. Third quarter 2004 revenues from Traffic Safety increased to $37 million from $30 million recorded during the same period last year. This 18 percent increase is due to improving operations and a number of late-starting construction projects that continued into the third quarter.

 

Rental fleet purchases for the company were $83 million for the nine months ending September 30, 2004, compared to $26 million for the same period in 2003.