Dollar Thrifty posts record earnings - Car Rental News
Dollar Thrifty posts record earnings
Car Rental News - 27/02/2012
Car hire firm Dollar Thrifty has posted record earnings for 2011.
The Tulsa, US-based company said last week that earnings from the fourth quarter had nearly tripled those seen during the same period just one year prior. Total revenues for the quarter reached $353.73 million (£223 million), compared to $349.06 million (£220 million) seen in 2010.
Meanwhile, Scott Thompson, Dollar Thrifty’s president and chief executive, said during a conference call with reporters and industry experts last Tuesday that the firm’s executives and board of directors were confident that the positive results would help the company defend itself from potential hostile takeovers and that it had extended shareholders’ "poison pill" rights scheme, which had been put in place following a buyout deal proposed last year by Hertz Global Holdings Inc.
Thompson went on to cite cost-cutting initiatives as the source of the fourth-quarter success.
Larger competitors Avis Budget and Hertz have both launched aggressive campaigns to acquire Dollar Thrifty in recent years. However, Hertz announced ithat it was suspending the acquisition efforts in October when its latest offer was rejected by shareholders. Similarly, Avis Budget dropped out of the race to buyout the Oklahoman rental company after it successfully acquired Avis Europe in mid 2011.