U.K-based industrial equipment rental concern, Ashtead Group Plc (OTC: ASHTF.pk) succumbed to the prevailing hard-hitting market conditions and saw its net income and revenues plummet in the first quarter of fiscal 2010, ended July 31. However, the firm remarked that it outperformed analysts’ expectations as its cost cutting practices began to take effect, turning on the shoashtead_logo.jpgw to gain a sizable market share, particularly in the United States.

  “…The actions we have taken to cut costs and reduce fleet size have ensured that our margins have held up well”, commented Geoff Drabble, the group’s chief executive. “Our continuing focus on developing stronger customer relationships and maintaining an infrastructure to provide excellent customer service throughout the cycle has been rewarded with clear market share gains”.

  The company said its profit after taxation during the period slid sharply by 93.4 percent to $8.9 million (1.8 cents per share), against net earnings of $135.8 million (26.2 cents per share) turned in for the first quarter of a year ago. Meanwhile, profit before tax over the quarter fell to $13.5 million from $58.1 million in the same quarter of the previous year, reflecting a year-on-year decline of 77 percent. According to the company, the better part of this year’s figure is attributable to amortization of acquired intangibles.

  Total revenues of Ashtead during the three months to July crushed 18.5 percent to $368.1 million, from $451.7 million booked in the first quarter of last year. Revenues included $295.7 million contributed by the group’s U.S business unit, Sunbelt, and $70.4 million from A-Plant, the U.K unit. In the prior year period, the two entities had contributed $352 million and $98.4 million respectively.

  While the company is expecting the market conditions and trading levels to remain inconspicuous during the ongoing fiscal second quarter, it also maintained its previous full year outlook on the assumption of a modest uptick in the economy. ASHTF share price was holding steady at $1.25 over the counter by the time of writing.

  Reference:
http://www.ashtead-group.com/