Hertz to correct results for past three years, shares plunge

News of accounting errors originating in 2011 drives shares down as much as 12 per cent

Car rental company Hertz Global said it would restate or correct financial results for the past three years to fix accounting errors originating in 2011, sending its shares down as much as 12 per cent today.

First-quarter results are likely to be below market estimates due to costs related to the accounting review, the company said in a regulatory filing that disclosed further accounting issues at the second largest US car rental firm.

Hertz, which replaced its chief financial officer in December, was scheduled to report results on May 7th, but delayed the announcement saying more work was needed. The company did not say today when it would release results.

The company said last month the restatement would likely reduce its 2011 net income by as much as $10 million to $174 million. – (Reuters)