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MARCH 2013 issue of
Rental Management

By the numbers
03/06/2013

30

Number of miles of cable used by Aggreko to provide power generation and heating systems for events, telecasts and related security arrangements for the presidential inauguration on Jan. 21, 2013, in Washington, D.C. The company said it provided 10.2MW of electricity and 4,800KW of heat for the press tents, audio delays, National Mall security, the VIP area at Lafayette Park and a tented venue for National Day of Service, a special service fair. In addition, Aggreko powered the press areas, video and audio along the parade route and the security screening area at the Pentagon.

 

$65,875,000,000

Record 2012 sales and revenues for Caterpillar, Peoria, Ill., an increase of 10 percent over 2011. Profit per share of $8.48 also was a company record. The records were set despite a decline in sales and revenues in the fourth quarter of 2012 to $16.075 billion from $17.243 billion in 2011. The outlook for 2013 is sales and revenues in a range of $60 to $68 billion and profit per share of $7.00 to $9.00. “I’m extremely pleased with our performance on reducing inventory $2 billion in the fourth quarter. As the world economy began to soften at mid-year, we increased our focus on reducing inventory. Cat dealers also worked to lower their inventories and, as a result, reduced their order rates during the second half of 2012. The result was a substantial reduction in our production levels and inventory. The reductions had a significantly negative impact on fourth-quarter sales and profit. The $2 billion inventory reduction in the fourth quarter was a remarkable effort, but we’re not done. Reduced production levels are likely to continue at least through the first quarter of 2013 until inventories and dealer order rates move back in line with end-user demand,” said Doug Oberhelman, Caterpillar’s chairman and CEO.

 

$81,150

Amount of money raised for the ARA Foundation through its annual charity auction during the Reception With a Purpose at The Rental Show 2013 in Las Vegas. Attendees made generous bids on 32 items donated by exhibitors during the charity auction, including a trip to Red Rock Ranch in Oklahoma, four tickets for the Gehl Club at Miller Park for a Milwaukee Brewers game, a weekend package for the John Deere Classic golf tournament in July and a Disney vacation package. A highlight of the auction was the final item, a reproduction Wayne Model 615 visible gasoline pump detailed with Harley Davidson Motor Co. colors and logo decals donated by General Equipment Co., Owatonna, Minn. The pump, with an estimated value of $2,200, sold for $5,500.
 

$649,700,000

First quarter net income for Deere & Co., Moline, Ill., a company record, compared with $532.9 million for the same period last year. Worldwide net sales and revenues for the first quarter increased 10 percent, to $7.421 billion, compared with $6.767 billion last year. Net sales of the equipment operations were $6.793 billion for the quarter compared with $6.119 billion a year ago. “With our 11th consecutive quarter of record earnings, John Deere has started 2013 on a positive note and is setting the stage for another successful year,” said Samuel Allen, chairman and CEO.

Number of miles of cable used by Aggreko to provide power generation and heating systems for events, telecasts and related security arrangements for the presidential inauguration on Jan. 21, 2013, in Washington, D.C. The company said it provided 10.2MW of electricity and 4,800KW of heat for the press tents, audio delays, National Mall security, the VIP area at Lafayette Park and a tented venue for National Day of Service, a special service fair. In addition, Aggreko powered the press areas, video and audio along the parade route and the security screening area at the Pentagon.

 

250,000

Number of machines that will have been completed by Skyjack, Guelph, Ontario, Canada. The company expects to reach the milestone later this year. To commemorate the event, Skyjack has launched a quest to find the oldest working Skyjack scissor lift. The owner of the oldest working machine will receive a new aerial work platform as a replacement. To help the company locate the oldest working Skyjack, you can “like” the company on Facebook and send images and a description of your oldest Skyjack scissor lift. Application photos must reflect safe and proper operating practices as outlined in owner operating manuals. Serial number must be provided in order to verify the machine’s manufactured date. More information is available online at skyjackquest2013.com.

 

12.8

Percentage increase in 2012 revenues for United Rentals, Greenwich, Conn., to $4.664 billion compared to $4.133 billion for 2011. The company reported fourth quarter rental revenue increased 8.7 percent year over year with an increase of 7.2 percent in the volume of equipment on rent and a 6 percent increase in rental rates year over year. The company reported full-year 2012 rental revenue of $3.455 billion and full-year net income of $75 million. Michael Kneeland, CEO, United Rentals, said, “Our strong performance in 2012 continued in the fourth quarter as we delivered solid growth, robust margins and exceptional flow-through from our revenue streams. The integration with RSC has been very successful, and while it’s not complete, we can now shift our focus to driving improvements across the entire business.” The company said it wants to further increase rental rates in 2013 another 4.5 percent year over year and expects to have revenues of $4.9 billion to $5.1 billion with time utilization of about 68 percent. The company expects net rental capital expenditures of about $1.05 billion on gross purchases of about $1.5 billion in 2013.

 


96

Percentage of American Rental Association (ARA) member rental store owners and managers responding to the latest ARA economic survey who expect annual rental revenues in 2013 to at least equal 2012. Of those responding, 85 percent expect rental revenue to increase and nearly 36 percent expect double-digit growth this year.

The anticipated increase in rental revenue also translates into positive purchasing expectations. Overall, 89 percent of the respondents expect to buy at least as much new rental equipment as they did in 2012. More than 67 percent of survey respondents expect annual new rental equipment purchases in 2013 to increase over 2012 with more than 31 percent expecting double-digit increases in spending on new equipment.

In a separate survey for ARA associate members, also conducted in January 2013, 92 percent of respondents said they expect increased sales into the rental channel in 2013, with more than 60 percent forecasting double-digit growth. Overall, 100 percent of those responding to the survey expect sales into the rental market to at least equal 2012.

The ARA economic surveys reflect a snapshot in time of those who responded and may not be representative of the industry as a whole. However, rental companies and suppliers/manufacturers can benchmark their businesses against these results.

— Sarah Peterson



 

 

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