United Rentals Announces Likely Traffic Control Goodwill Charge
Greenwich, CT - Sep 27, 2004
United Rentals, Inc. (NYSE: URI) today filed a report on Form 8-K that included disclosure of a likely non-cash charge in the third quarter for the impairment of goodwill relating to the company's traffic control business.
John Milne, United Rentals' president and chief financial officer, commented, "As we previously disclosed in our second quarter 10-Q, continued weakness in our traffic control business may necessitate a goodwill write-off. The goodwill balance of our traffic control business was $140.5 million at the end of the second quarter.
"We continue to see weakness in our traffic control business. Although disappointing, the weakness in this segment was anticipated in our previously issued earnings guidance. As a result of this weakness, we believe it likely that we will be required to record a significant non-cash goodwill impairment charge in the third quarter. We have not yet completed our analysis and, accordingly, currently cannot quantify the amount of this write-off. However, we expect that this write-off is likely to have a material adverse affect on our GAAP results for the third quarter and full-year 2004."
About United Rentals
United Rentals, Inc. is the largest equipment rental company in North America, with an integrated network of more than 730 rental locations in 47 states, seven Canadian provinces and Mexico. The company's 13,300 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent over 500,000 rental equipment units with a total original cost of $3.7 billion. United Rentals is a member of the Standard & Poor's MidCap 400 Index and the Russell 2000 Index® and is headquartered in Greenwich, Connecticut. Additional information about United Rentals is available at www.unitedrentals.com.
VP, Investor Relations and
United Rentals, Inc.