Hertz Global Holdings, Inc, released its quarterly and yearly financial reports for 2006 this week, reporting worldwide revenues for 2006 at $8.06 billion, a 7.9-percent improvement over 2005.
The net income for the company has gone up as well. Net income for the fourth quarter of 2006 totaled $39.8 million, showing a marked turnaround from 2005’s comparative quarter, which listed a $27.6 million loss.
Hertz Chariman and Chief Executive Mark P. Frissora has attributed the positive results to the company’s recent efforts to reduce operating expenses in U.S. car rental and equipment rental operations, and also in its increased spending in advertising for 2006, writes The Associated Press.
The company generated strong cash flows during 2006, with net corporate debt decreasing from $4.8 billion recorded Dec. 31, 2005, to $4.5 billion by Dec. 31, 2006. The company also plans to lay off approximately 1,550 people from their global workforce of 31,000, to further streamline costs, reports The Associated Press.
Citing the company’s improving financial profile, Standard & Poor’s Ratings Services have improved Hertz Global Holdings, Inc.’s rating from “negative” to “stable.”