Hertz's Third-Quarter Profits Show Gains

Hertz reported a third-quarter pre-tax profit of $262 million, an improvement of $13 million from the same period in 2004.

Hertz said the improvement reflected higher car and equipment rental volume, partially offset by lower pricing.

In early September, the Associated Press reported that Ford Motor Co. had agreed to sell Hertz, its wholly owned auto rental subsidiary, for $5.6 billion in cash to a private equity group.

Since April, Ford had been open about its consideration to end its 11-year ownership of Hertz to focus on its automotive business.

The rental company is planning a cash tender offer for up to $2.3 billion of outstanding debt securities in connection with the deal. The rest of the Hertz debt will be refinanced.

The deal, subject to regulatory approvals, is expected to close by the end of the year, according to the AP report.

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