2005 proved to be a very good year for the rental industry. Several
companies showed record earnings and revenues last year. Caterpillar,
H&E, Ingersoll-Rand, and JLG were among the leaders in earnings.
Caterpillar, Peoria, IL, had record profits and revenues in the third
quarter. With revenues of $8.98 billion and profit of $667 million both
numbers were up dramatically from the 2004 year. Caterpillar attributed
the growth to strong global demand and improved pricing.
H&E Equipment out of Baton Rouge, LA had a very strong third quarter
as well. Their gross profit rose to $13.4 million, an increase of 40.1
percent from the year before. They also had a revenue increase of 22.7
percent to $27.5 million that quarter.
Ingersoll-Rand, Annadale, NJ showed an increase of 10 percent in the
third quarter to $2.6 billion. This was led by growth in their compact
vehicle technologies, construction technologies, industrial
technologies, and security technologies. There was also an increase in
their parts, service, attachments, rental and used equipment sections.
JLG Industries, McConnellsburg, PA had a record fourth quarter as
well. With a sales increase nationally of 33 percent and 36 percent
internationally JLG showed a 34 percent increase in over all revenue.
Financial forecasts were upbeat and hopeful for this year as well.
Equipment prices will be higher this year due to higher material and
transportation costs, but the demand for renal equipment should not
change.