Hertz Reports Net Loss of $158M

Photo courtesy of The Hertz Corp.
Photo courtesy of The Hertz Corp.

For the second quarter 2017, Hertz Global Holdings Inc. has reported its total revenues as $2.2 billion, a 2% decline versus second quarter 2016.

Adjusted earnings for Q2 were $35 million compared to $184 million in the same period last year, according to Hertz.

For the second quarter, Hertz reported a net loss (from continued operations) of $158 million, including $54 million of impairment charges. This is compared with a net loss of $28 million during the same period last year. On an adjusted basis, Hertz’s net loss was $52 million compared with a net income of $35 million in Q2 2017.

For the U.S., Hertz’s total RAC revenues were $1.5 billion in Q2, a decrease of 4% from last year. Transaction days decreased by 3% year-over-year compared to a strong second quarter 2016, which was driven by replacement rentals from high customer vehicle recall activity. According to Hertz, pricing decreased by 2% in Q2 — driven by a change in customer mix year-over-year and weaker ancillary revenues. Adjusted earnings for Q2 were negative $22 million, versus positive $168 million in the same period last year.

"We have made significant progress in the first half of the year, executing on our operating turnaround plan,” said Kathryn V. Marinello, president and CEO of Hertz. “Of course, the hard work always comes before the pay off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S.”

“On the upside, we have now completed our U.S. fleet transformation, redesigned 37 Hertz airport locations for Ultimate Choice, updated our financial and revenue management systems, and introduced new management tools and resources to drive service excellence,” added Marinello. “Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes."

In Q2, U.S. RAC net vehicle depreciation per unit per month increased 27% to $353, primarily driven by declining residual values and accelerated vehicle disposition timing. Hertz continued its fleet optimization plan by selling 35% more vehicles year-over-year, according to the company. U.S. vehicle utilization declined by 130 basis points in Q2.

Hertz’s total international RAC revenues were $543 million in Q2, an increase of 1% from Q2 2016. Excluding an $18 million impact of foreign currency exchange rates, revenues increased 4% due to a 6% increase in transaction days, partially offset by a 1% decrease in total revenue per transaction day (RPD), according to Hertz.

Comment On This Story

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

What a Connected Fleet Means to Avis (and Car Rental)

Counter bypass is just the beginning. The promise of a “data-driven ecosystem” that connects renters with the rental agency, retail services, and even the city is a better managed fleet, an improved user experience, and new revenue opportunities during the rental itself.

Should Peer-to-Peer Renters Pay Airport Car Rental Fees?

The question is central to the City of San Francisco’s lawsuit against Turo for operating without a permit at San Francisco International Airport.

Hard Times Ahead for the Compact SUV Segment?

The hottest segment today is facing a glut of models and volume in tomorrow’s wholesale market.

Job Finder: Access Top Talent. Fill Key Positions.