• Wed. Dec 6th, 2023

UK-based Ashtead Reports Lower Profits due to $2 Billion Charge and Troubled US Operations


Nov 20, 2023

Ashtead Group, a London-listed company, has released a handout photo showcasing an example of Sunbelt Rentals’ equipment hire. The company cited several reasons for its downbeat outlook, including a quieter hurricane season and fewer naturally occurring events such as wildfires. Ashtead operates in the U.S., UK, and Canada and competes with United Rentals in the U.S. market. The company serves construction, emergency response, and entertainment markets, renting out equipment from diggers to construction tools.

The impact of the Hollywood actors’ and writer’s strikes affected its film and television business in Canada and had some impact on the rest of the Canadian, U.S., and UK businesses that rent into that space. Despite this setback, Ashtead expects its annual profit to come in below market expectations due to lower emergency response activity and a more than $2 billion depreciation charge for the year. Additionally, the company has lowered its annual group and U.S. rental revenue growth forecast and said net interest costs would amount to about $540 million for the year.

In conclusion, Ashtead Group faces challenges in various markets due to lower rental activity and depreciation charges. However, with its diverse portfolio of services and operations in multiple countries, the company remains committed to providing high-quality equipment hire solutions to customers worldwide.

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