Hertz boosts full-year profit forecast on surging demand

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Car Rental News - 21/10/2010


Expanding demand for vehicle hire has led Hertz to adjust its profit outlook for the year.

Hertz Global Holdings has revised its full-year profit forecast on surging demand for vehicle rentals and a reduction in fleet costs. The forecast for the full 2010 year has been raised to 47-48 cents per share. This compares to the previous view of 43-45 cents per share. The new forecast includes an impact of approximately 2 cents per share from higher interest charges in the fourth quarter.

Hertz also sees adjusted earnings of 40 cents per share for the third quarter of the year. The average earnings forecast for the third quarter amongst analysts is at 35 cents per share. Earlier in October, Hertz rivals Avis had already pointed to firming demand for automobile rentals. Avis also said it expected its third-quarter earnings to come at around the level expected by analysts.

It is less than a month since Hertz dropped its months’ long struggle to wrest control of the lucrative Dollar Thrifty network from competitors Avis. As a result, Avis and Dollar Thrifty are now working on developing a merger agreement likely to pass the scrutiny of anti-competition authorities.

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