Electro Rent Corp. (ELRC: Quote) reported third quarter net income of $5 million, slightly lower than last year's $5.08 million. Earnings per share were $0.21, flat with the prior-year quarter.
Net income for the latest period was impacted by higher depreciation expense related to the company's substantially increased average rental and lease equipment pool, as well as higher selling, general and administrative expenses.
Total revenues were up to $60.08 million from $59.45 million a year ago.
"Our business remained steady during the quarter, with growth constrained by slower new and used equipment sales and uncertainty in the defense and aerospace industries, an important segment of our business," said Daniel Greenberg, Chairman and CEO of Electro Rent. "A challenging budgetary environment in the sector delayed buying decisions while companies come to grips with changes in the defense budget. We believe that when the dust settles, renting test and measurement equipment will emerge as a key alternative to purchasing..."
by RTT Staff Writer
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