Hertz revenue falls 5% on lower US car rentals

Car rental company closed about 200 stores in second quarter

Hertz  rental cars await pickup at O’Hare International Airport in Chicago

Hertz rental cars await pickup at O’Hare International Airport in Chicago

 

Car rental company Hertz reported a 5 per cent decline in quarterly revenue, hurt by a strong dollar and lower car rental volume in the United States.

Hertz, which received more than two-thirds of its car rental revenue from airport services in 2014, has been affected by the strong dollar that made travel to the United States pricier for tourists.

The company also closed about 200 stores at off-airport locations in the second quarter, as part of its efforts to focus on more profitable locations and to save $300 million by March.

Revenue fell to $2.69 billion from $2.83 billion in the quarter ended June 30th.

Analysts on average had expected $2.71 billion, according to Thomson Reuters I/B/E/S.

Net income fell to $23 million, or 5 cents per share, from $72 million, or 15 cents per share, a year earlier.

On an adjusted basis, Hertz earned 19 cents per share, meeting the average analyst estimate.

Hertz reiterated its 2015 consolidated corporate ebitda of $1.45 billion-$1.55 billion.

Analysts on average were expecting $1.46 billion.

The is the first time Hertz is reporting its quarterly results after restating financial results for three years through 2013, in July.

Hertz had to strike off $144 million in net income for three years in the restatements.

Hertz’s stock, which closed up 7.5 per cent in regular trading on Monday, was down 2.6 percent in extended trading.

Up to Friday’s close, the stock had fallen about 48 per cent since June 5th, 2014, the day before the company said it would restate 2011 results.

Reuters

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.