Hertz Goes from Red to Black in Q4 and FY 2011

Hertz Global Holdings Inc. reported on Feb. 22 fourth quarter 2011 worldwide revenues of $2.0 billion, an increase of 9.7% year-over-year. Worldwide car rental revenues for the quarter increased 9.5% year-over-year to $1,695.2 million. Revenues from worldwide equipment rental for the fourth quarter were $317.9 million, up 11.1% year-over-year.

Fourth quarter 2011 adjusted net income was $104.0 million, versus $41.6 million in the same period of 2010.

Worldwide revenues for the full year 2011 were $8.3 billion, an increase of 9.7% over the prior year. Worldwide car rental revenues for the year increased 9.2% to $7.1 billion. Revenues from worldwide equipment rental for the year increased 13.0% to $1,209.5 million.

Full year 2011 net income, on a GAAP basis, was $176.2 million, compared with a net loss of $48.7 million for 2010.

Mark P. Frissora, the company's chairman and CEO, said, “Our record results for the fourth quarter and full year 2011 are attributable to an equal emphasis on efficiency and revenue growth, which were achieved despite deteriorating macro conditions in Europe. … The results of our growth initiatives were record worldwide car rental revenues for full year 2011, on record transaction day growth, and the fourth consecutive quarter of double-digit growth in the equipment rental business.

These achievements capped a year where Hertz almost doubled 2010 adjusted pre-tax income and beat the previous, pre-recession record in 2007, on $387.2 million lower revenues.”

The company forecasts full year 2012 revenues in the range of $8,850.0 million to $8,950.0 million. The range is based on the projection of modest economic growth, a strong U.S. Dollar and incremental franchising of certain rental operations.

Mark Frissora, commenting on the company’s outlook, said, “Despite the soft conditions in Europe, we are encouraged by the operating environment in the United States. For the first quarter of this year, we are anticipating double-digit volume growth in the U.S. car rental business, based on solid advance reservation build-up, and we are expecting approximately 20% rental rate revenue growth in the U.S. equipment rental business.”

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