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United Rentals 1Q profit rise 27 percent on lower costs

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April 30, 2008

GREENWICH, Conn.—United Rentals Inc.'s first-quarter earnings jumped 27 percent on lower operating costs from a shift in focus to rentals from sales, the company said Tuesday.

Net income rose to $38 million, or 34 cents per share, from $30 million, or 28 cents per share, in the year-ago period.

The result was in line with estimates from analysts polled by Thomson Financial.

Revenue dropped 8 percent to $772 million from $838 million last year as the company cut back on equipment sales. Rental revenue edged 1 percent higher to $571 million.

Cost of revenue dropped 9.7 percent to $524 million, with the biggest declines coming in costs for sales of new equipment and contractor supplies.

United Rentals shares fell 21 cents to $18.80 in morning trading.

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