Hertz profits down on lower sales - Car Rental News
Hertz profits down on lower sales
Car Rental News - 30/07/2009
The global rental car operator reported a drop in profits of 92 percent for the second quarter.
Hertz said that its profits on the $3.9 million in sales for the second quarter were the equivalent of one cent per share. This was down from the $51.2 million in profits, or 16 cents per share, for the April-June period last year.
During the three-month period, Hertz took $33.3 million in restructuring and other, related charges, involved with the closure of rental locations, job cuts and outsourcing.
Second-quarter adjusted earnings were 12 cents per share.
Revenue dropped by 23 percent for the quarter, to $1.75 billion, from $2.28 billion during the same period last year.
Analysts generally exclude one-time items when estimating results, and expected that Hertz would show a second-quarter profit of 6 cents per share on $1.83 billion in revenue, according to a Thomson Reuters survey.
The rental car company reported that its cost reduction efforts were on target, and that it anticipated achieving annualized savings of $570 million or more for this financial year.
It added that volumes and pricing trends in both the US and Europe have improved for the peak summer period; and that used car values are now close to 2008 levels in the US.