Majors Report Q2 Earnings

While Hertz and Avis continue the bidding war for Dollar Thrifty, the three public rental car companies reported second-quarter earnings in August.

Hertz Global Holdings reported a second quarter net loss of $25.1 million because of restructuring charges, compared with a profit of $3.9 million in the second quarter of 2009. Revenue rose 7.1 percent to $1.88 billion, though expenses grew 9.4 percent.

Rental days rose 8.9 percent, increasing 10 percent in the U.S. and 6.4 percent internationally. Revenue per day (RPD) slipped 0.1 percent. Worldwide car-rental revenue grew 9.3 percent while equipment-rental revenue decreased 4 percent, or 5.9 percent excluding currency fluctuations.

Hertz's revenue performance fell slightly short of Wall Street's expectations, according to the Wall Street Journal.

Avis Budget Group reported a second quarter pre-tax income of $29 million, compared with a loss of $2 million in the previous year. Revenue fell 1 percent to $1.3 billion. Domestic rental days declined 6 percent, while RPD increased 1 percent. Car rental revenue slipped 5 percent in the U.S., but grew 16 percent internationally. Average daily rate dipped less than 1 percent in the quarter.

The car-rental company's earnings beat Wall Street's expectations, though revenue was below analysts' estimates, according to the WSJ.

Meanwhile, Dollar Thrifty continues to outperform Wall Street's expectations. The company more than tripled its profit in the
second quarter, earning a net income of $42.3 million compared with $12.4 million a year earlier.

Revenue fell 0.8 percent to $396.2 million, though car rental revenue rose 2.9 percent. Total expenses fell about 14 percent during the period.

Dollar Thrifty boosted its full-year earnings forecast, although it lowered its vehicle-rental revenue expectations.

"We are very pleased that the company once again has produced another record quarter and is on pace to make 2010 the most profitable year in the history of the company," said CEO Scott Thompson during an earnings call with investors.

CONTINUED:  Majors Report Q2 Earnings
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