Nev.-based Amerco, the holding company for U-Haul International, Inc., Oxford Life Insurance Company, Republic Western Insurance Company and Amerco Real Estate Company, posted record revenues for its first fiscal quarter of 2002, but watched its profits slip.
Revenues for its first fiscal quarter of 2002 were $519.9 million as compared to $459.6 million last year (a 13.1% increase). Revenue growth came from the moving and storage segment (3.5% increase) and the insurance segment (66.9% increase).
However, the company said its profitability was adversely impacted by losses from insurance operations, startup costs associated with the addition of new storage facilities, rental vehicle repair and the expansion of the rental fleet.
Net profits for the first quarter declined from $37.6 million to $25 million. Total expenses for the first quarter of fiscal year 2002 grew 21.7%. Expenses for the moving and storage segment ran higher than last year, due to increases in lease expenses ($5.9 million), personnel expenses ($4.4 million), repair and maintenance expenses ($11.9 million) and depreciation expenses ($5.9 million).
The insurance segment expenses also ran higher than last year, due to increases in benefits and losses ($49.2 million) and operating expenses ($4.1 million).