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(AFX UK Focus)
2009-11-04 13:25
UPDATE 1-H&E Equipment posts Q3 loss |
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* Says cuts debt by $42.0 mln during Q3 * Says rental pricing remains weak Nov 4 (Reuters) - H&E Equipment Services posted third-quarter results below market estimates, hurt by a fall in new equipment sales and equipment rentals. "Our customers lack a near-term need for construction equipment based on today's limited visibility of a recovery in our end-markets," Chief Executive John Engquist said in a statement. The equipment services company said its fleet utilization has stabilized but at a low level and as a result, rental pricing remains weak. For the latest third quarter, the company reported a loss of $2.3 million or 7 cents a share, compared with a profit of $17.6 million or 50 cents a share a year ago. The company, which serves the industrial and construction end markets, said total revenue fell 37 percent to $175.6 million, while new equipment sales fell 50 percent to $48.7 million. Analysts on average had expected a breakeven for the quarter, before special items, on revenue of $176.8 million, according to Thomson Reuters I/B/E/S. The company, which sells and rents out cranes, earthmoving equipment and industrial lift trucks, said it reduced debt under its revolver by $42 million during the quarter. Shares of the Baton Rouge, Louisiana-based company closed at $10.88 Tuesday on Nasdaq. (Reporting by Divya Sharma in Bangalore; Editing by Gopakumar Warrier) Keywords: HANDEEQUIPMENT/ (divya.sharma@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: divya.sharma.reuters.com@reuters.net)
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