Ashtead Group, Leatherhead, Surrey, U.K., parent company of Sunbelt Rentals, Fort Mill, S.C., said last week that it is starting to see signs of recovery despite significant decreases in rental revenue through the first nine months of its fiscal year ended Jan. 31.

"Whilst market conditions have remained difficult throughout the period, our operational performance has been good relative to both our U.K. and U.S. peers and we are clearly gaining market share," said Geoff Drabble, Ashtead's chief executive. "This outperformance, together with the preparatory actions we took a year ago to reduce costs and fleet size, has helped us to protect profitability and deliver continued strong cash generation. Our strong balance sheet will also enable us to ensure that we have the appropriate infrastructure and fleet mix in place when cyclical recovery begins. We continue to believe in the fundamental strength of our markets. The business is delivering good margins and gaining market share, which, together with its financial strength, means that the board believes that Ashtead is increasingly well placed to benefit when markets recover."

Sunbelt Rentals rental revenue for the first nine months were $759.6 million, down 28 percent, and total revenue for the period was $821.3 million, down 30.6 percent from $1.184 billion during the same period last year.

“This is not where we look to be on an ongoing basis, but this is the market that we are all in at the moment and we are closer to the end of this downturn than the beginning,” Drabble said.

Ashtead said it expected to see a boost late in the year from government stimulus packages and the rebounding residential building market in the U.S.

Revenues for Ashtead's A-Plant equipment rental company in the U.K. had revenues of £628.3 million (US$940.5 million), down 24 percent for the first nine months of the company's fiscal year.