H&E Reports 2008 Results

March 13, 2009 â€“ H&E Equipment Services, Baton Rouge, La., recently announced operating results for the fourth quarter and year ended Dec. 31, 2008. The company reported a 9.6 percent decrease in revenues to $261.9 million versus $289.7 million a year ago. Income from operations decreased more than 77 percent to $8.5 million compared to $37.3 million a year ago primarily due to goodwill and intangible asset impairment charges of $22.7 million. Excluding the impairment charges, income from operations decreased 16.3 percent to $31.2 million compared to a year ago.

â€œH&E Equipment again delivered solid financial results in the fourth quarter in spite of the extraordinary economic challenges that occurred throughout the year,â€ said John Engquist, H&E Equipment Servicesâ€™ president and CEO. â€œThe current economic situation and lack of future visibility is clearly impacting all of our customers and their industries at some level. The continuing credit crisis and virtual inability to access lending is resulting in more and more project cancellations and delays.â€

Engquist said the company is taking the necessary steps to protect performance by reducing capital expenditures and closely monitoring inventory levels. A workforce reduction and hiring freeze have resulted in a 10-percent reduction in staff over the last year. The company didnâ€™t provide 2009 guidance because of a â€œcurrent lack of visibilityâ€ into product demand, frozen credit markets and volatile commodity prices.

Full H&E year-end results