NEW YORK --- Cendant Corporation, parent company of Avis and Budget Rent A Car systems, released a comment on the financial impact Hurricane Katrina had on its overall operations, as well as what the company was doing to assist in the relief effort.
At this point, the company estimates an impact of $35 million to $70 million on pretax income. Anywhere from $15 million to $30 million of that is related to asset impairment losses, which includes Cendant’s rental cars.
Though the financial impact is mounting, Cendant is participating in the rebuilding of the region.
The Cendant Charitable Foundation will be matching employee donations up to a combined total of $500,000. Those proceeds will be contributed to the American Red Cross Hurricane 2005 Relief Fund.
In addition, Cendant Car Rental Group, along with its Hotel Group and Timeshare Resort Group, is working with the Federal Emergency Management Agency, the Department of Homeland Security and the American Red Cross to provide assistance, including access to housing and rental vehicles for emergency response personnel moving into the area to coordinate relief efforts.