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.

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