Hertz Profit Climbs, Despite Lower Top Line
November 09 2015 - 9:50AM
Dow Jones News
Hertz Global Holdings Inc. said its third-quarter profit soared
59% as the company emerges from recent accounting woes, though
revenue fell short of expectations on currency effects.
In July, the rental-car company that operates its namesake
brands as well as Dollar and Thrifty 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 as the
rise of car-sharing operations, such as Uber, continues to pressure
the rental industry.
The company, whose shares have dropped 25% this year, has been
trying to turn things around. Hertz named John Tague as chief
executive in November and said in May that it planned to raise
rental rates.
"Our profit improvement in the third quarter is early evidence
of the potential we see in our performance improvement plan," Mr.
Tague said. He pointed to fleet efficiency, which was up three
percentage points from the quarter last year to 83%. Mr. Tague also
said the rental company had completed the integration of Dollar
Thrifty operations, following the closing of the merger in November
2012.
Hertz reported a profit of $237 million, or 52 cents a share, up
from $149 million, or 32 cents, a year earlier. The company said
adjusted earnings excluding certain items were 49 cents a share.
Revenue dipped 4.6% to $2.98 billion.
Analysts polled by Thomson Reuters had forecast adjusted
earnings of 52 cents on $3.1 billion in revenue.
Revenue fell 1.6% in the company's U.S. car-rental business,
13.6% in its international car-rental business and 2.9% in its
world-wide equipment-rental business.
Shares closed Friday at $18.81 and were inactive premarket.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 09, 2015 09:35 ET (14:35 GMT)
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