Elecro Rent Sales Improve but Profits Still Down

Electro Rent Corp. saw a 50 percent drop in net income for the first quarter compared to the year before despite improvements in sales and leasing of its technology equipment. The Van Nuys-based supplier reported net income of $2.1 million, or $0.09 per diluted share, on revenues of $32.2 million for the quarter ending Aug. 31. For the same period in 2008, the company reported a net income of $4.4 million, or $0.17 per diluted share, on revenues of $35 million. While revenues continue to be down there are signs of stabilization in certain segments, including rent on equipment and in the telecommunications business, said Electro Rent Chairman and CEO Daniel Greenberg. International business was mixed with good sales in Europe but declining rental revenues in China offset by growing used equipment sales, Greenberg said. “Weighing the positive and the negative factors at play in the economy right now, it appears that the positive elements are showing growing signs of life,” Greenberg continued. “We will be watching closely to see if the barometer continues to rise and if these indicators turn into sustainable, longer-term trends.” Mark R. Madler