Baton Rouge-based H&E Equipment Services saw its fourth-quarter profits decrease 8.2% to $273.2 million from $297.8 million a year ago because of a rough patch in the oil industry and unfavorable weather conditions in many of its end markets, according to a quarterly and yearend report released today.
Fourth quarter net income also was down to $12 million, or 34 cents per diluted share, versus $16.7 million, or 47 cents per diluted share, a year ago, a decrease of $4.7 million or 28.2%.
“We delivered solid results for the quarter and year despite the turmoil in the oil patch, the historic flooding that occurred in May and the exceptional rainfall we saw in many of our end markets in the fourth quarter,” John Engquist, H&E Equipment Services chief executive officer, says in a statement. “Our rental business continues to strengthen, with revenues increasing 3.7% for the quarter and 9.6% for the year, and helped offset the weakness in our distribution business, especially new crane sales.”
Engquist says the company would continue to have limited visibility into its distribution business until the oil patch rebounds. The company also believes it can react quickly to market demands.
Rental revenues increased 3.7% to $115 million because of a larger fleet. Average rental rates increased .6% compared to a year ago and improved .4% compared to the third quarter of the year.
For the year ended Dec. 31, 2015, H&E Equipment’s net income decreased to $44.3 million, or $1.25 per diluted share, compared to the $55.1 million, or $1.56 per diluted share, a year ago.
Total revenues also decreased to $1.04 billion from $1.09 billion in 2014.
—Alexandria Burris
