Avis Budget Posts Q1 Profit

Avis Budget Group reported net income of $7 million for the first quarter of 2011, compared with a year-earlier loss of $38 million. Revenue rose 7 percent to $1.24 billion.

"We delivered solid revenue and earnings growth in the quarter as improved travel trends, a continued focus on productivity and cost containment, and lower-than-expected fleet costs more than overcame the weather-related disruptions we faced," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer in a statement.

Avis expects its domestic vehicle depreciation costs to decline 5-8 percent on a per-unit basis in 2011. For domestic car rental, revenue increased 6 percent primarily due to a 7 percent increase in volume, partially offset by a 3 percent decline in pricing.

In regards to the potential merger, Avis Budget "...continues to pursue the acquisition of Dollar Thrifty Automotive Group Inc., the fourth-largest car rental company in the United States. Avis Budget Group and Dollar Thrifty have been working together to obtain antitrust clearance for the proposed acquisition. In the first quarter, we incurred $9 million of expense related to this potential transaction, including approximately $7 million of acquisition-related interest expense."

More detailed financial information available here.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Hertz, Avis Autonomy Partnerships: Good First Steps on a Long Path

Two new autonomous vehicle project partnerships bring the importance of fleet management to the fore.

An Inside Look at Car Rental in China

A trip to a new car rental convention in Guangzhou reveals a booming market, yet one facing unique challenges.

Job Finder: Access Top Talent. Fill Key Positions.

>