Hertz 2007 Annual Report Download - page 13

Hertz Global Holdings, Inc. 11
HERC (Worldwide Equipment Rental) Despite economic headwinds in the United States
that affected the non-residential construction market throughout 2007, Hertz Equipment Rental
Corporation (HERC) nevertheless increased revenues by 5.0%, to almost $1.8 billion, with 27.4%
of total HERC revenues generated outside of the U.S. HERC increased year-over-year adjusted
pre-tax income* by over 8%, and generated adjusted pre-tax income margins* exceeding 21%.
HERC’s success in 2007 is attributable to several factors focused on expanding market,
product and service capabilities for its diversified customer base. Specifically, HERC further
penetrated the industrial sector, expanded geographically and introduced new product lines.
One example of HERC’s diversification strategy is the growth of its power generation
product line, one of 8 new product initiatives in 2007. Now available at 21 locations in North
America, HERC offers a broad range of mobile power generators to serve customers ranging
from small contractors to the largest industrial businesses. Power generation business almost
doubled during 2007, and is one key way HERC is increasing share of rental spend among its
largest accounts in the industrial and construction sectors.
HERC also expanded its footprint geographically to 376 locations last year, opening 21 lo-
cations, which resulted in over $44 million in annualized revenues. Revenue growth also came
from the General Rental, Generator, Trench Shoring and Service Pump product lines. HERC
also completed the acquisition of Quilovat, a Spanish power generation company, in early 2008
to supplement our presence in that growing market.
HERC will continue its product and market expansion in 2008, to serve a growing and
diversified customer base. By also implementing HIP and NPS to improve productivity and
customer service levels, HERC is positioned to grow profitably in order to overcome current
economic conditions.
*Indicates a Non-GAAP measurement presented and reconciled within the section of the Annual Report to Stockholders entitled
“Definitions and Non-GAAP Reconciliations,” which follows our Annual Report on Form 10-K included in this Annual Report.
n Equipment Rental
Meeting the equipment rental
needs of businesses ranging
from small contractors to the
largest industrial companies.
n Customer Service
The widest possible range of
products and services which
meet our customers’ needs.
n Equipment Repair
Improved processes to get
equipment out of the shop and
onto the job site.
Gerald A. Plescia
Executive Vice President &
President, HERC
n Hertz Equipment Rental
376 equipment rental locations
in North America, France and
Spain.