AP NEWS

United Rentals sees profits and revenues rise

April 19, 2018 GMT

United Rentals, the world’s largest equipment rentals company, saw profits and revenues increase in the past quarter and announced a major new stock buyback program, according to its latest earnings report released Wednesday.

First-quarter profits surged to $183 million, up 68 percent from a year ago. Revenues for the past three months hit $1.73 billion, rising 28 percent from the same period in 2017.

Equipment rentals accounted for about 85 percent of total returns. The equipment category’s revenues rose about 25 percent, amounting to some $1.46 billion.

The tax reform passed last December by Congress helped to boost earnings. As a result of the new law, United is receiving a one-time, non-cash tax benefit estimated at $746 million, which reflects the revaluation of the company’s net deferred tax liability with the new corporate tax rate of 21 percent.

United also announced Wednesday a new $1.25 billion share repurchase program, which is scheduled to begin later this year, after the completion of an existing $1 billion stock buyback initiative.