Dollar Thrifty profits fall in second quarter - Car Rental News
Dollar Thrifty profits fall in second quarter
Car Rental News - 11/08/2008
Dollar Thrifty Automotive posted second-quarter profits that dropped by 30 percent from the previous year due.
The parent of Dollar Rent A Car and Thrifty Car Rentals reported earnings for the second quarter of $10.8 million, down sharply from posted earnings of $15.3 million for the same period in 2007.
Its adjusted earnings for the period amounted to $5 million as compared with $8.7 million after adjustments last year during the same quarter.
Overall revenue for Dollar Thrifty decreased by 1.3 percent for the quarter, down to $445.7 million from the $451.6 million reported for the second quarter last year.
Thomson Financial conducted a poll of industry analysts, who had projected a loss of 41 cents per share on overall revenue of $448.4 million.
Daily car rental revenue decreased by 1.3 percent, and there was a slight decrease also in the number of rental days. Total revenue derived from rental vehicles fell to $424.4 million, down by 1.6 percent.
Due to soft sales in the used car market, vehicle depreciation costs increased by approximately 28 percent.
The Dollar Thrifty group acknowledged that conditions are expected to remain challenging for the rest of this year, due to the economic downturn, fluctuations in used car values and the reduced numbers of passengers on airlines.