Hertz Global Holdings Inc. reported declines in revenue and
earnings for the June quarter, as the car-rental company seeks to
get past recent accounting woes and a retooling of operations.
In July, the operator of the Dollar and Thrifty rental brands,
completed restating its financials, a process that cut its profit
by about $58 million in 2012 and $51 million in 2013.
Hertz, like its competitors, is facing new challenges within the
industry as the rise of car-sharing operations, such as Uber,
continues to pressure the rental industry.
The company, whose shares have dropped about 37% over the past
12 months, has been trying to turn things around of late. Hertz
named John Tague as chief executive in November and said in May
that it planned to raise rental rates.
On Monday, Hertz reaffirmed its goal to cut $300 million in
annual costs by the end of 2015, reiterated that it plans to split
off its equipment-rental business, and backed its forecast for
consolidated earnings before interest, taxes, depreciation and
amortization of between $1.45 billion and $1.55 billion for the
full year.
For the second quarter, Hertz's earnings fell to $23 million, or
5 cents a share, from $72 million, or 15 cents a share, a year
earlier. Excluding certain costs, such as those from restructuring
and the company's accounting review and investigation, per-share
earnings fell to 19 cents from 28 cents.
Revenue dropped to $2.69 billion from $2.83 billion.
Analysts had expected earnings of 19 cents a share on revenue of
$2.71 billion.
Revenue fell 3% in the company's U.S. car-rental business, 13%
in its international car-rental business and 2% in its world-wide
equipment-rental business.
Shares of Hertz fell 2.5% to $16.69 in after-hours trading.
Write to Angela Chen at angela.chen@wsj.com
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