Ashtead Group, a British equipment rental firm, announced on Monday that its annual profit would fall below market expectations due to lower emergency response activity in the U.S. The company’s U.S. business is expected to be affected by a more than $2 billion depreciation charge for the year, according to a statement issued by the London-listed company. The decrease in activity is blamed on a quiet hurricane season and fewer naturally occurring events, such as wildfires. The company, which competes with United Rentals in the United States, serves construction, emergency response, and entertainment markets in the U.S., UK, and Canada by renting out equipment ranging from diggers to construction tools. The impact of strikes in the film and television business in Canada has had a longer-lasting effect than anticipated, hurting the company’s operations in Canada and some impact on the rest of its Canadian, U.S., and UK businesses in this space.
The company, which is known as Sunbelt Rentals in the U.S., has reduced its annual group and U.S. rental revenue growth forecast, and said net interest costs are expected to amount to about $540 million for the year.
The decrease in activity is blamed on a quiet hurricane season and fewer naturally occurring events, such as wildfires. The company, which competes with United Rentals in the United States, serves construction, emergency response, and entertainment markets in the U.S., UK, and Canada by renting out equipment ranging from diggers to construction tools. The impact of strikes in the film and television business in Canada has had a longer-lasting effect than anticipated, hurting the company’s operations in Canada and some impact on the rest of its Canadian, U.S., and UK businesses in this space.