Dollar Thrifty Reports on Difficult Operating Trends

Dollar Thrifty Automotive Group Inc. recently announced that its second-quarter results were below expectations and that it no longer expects to meet its full-year earnings target amid challenges with daily revenue and vehicle depreciation costs.

Shares of Dollar Thrifty recently lost more than a fifth of their value after analysts responded negatively to the car rental company's lowered 2008 outlook.

The stock plunged $1.49, or 26.1 percent, to $4.21 in morning trading on July 2, 2008 and touched an all-time low of $4.18.

Dollar Thrifty Investors sold off the stock, pushing shares down $3.75, or 40 percent, to $5.70.

"The balance of the year looks less robust than we had forecasted, given overall economic trends," Chief Executive Gary L. Paxton said.

The manager of the Dollar Rent A Car and Thrifty Car Rental brands had targeted 2008 earnings, excluding items, of $1 to $1.50 a share. It didn't give a new projection, though Paxton said Dollar Thrifty expects to be profitable. It lowered its estimate of corporate earnings before interest, tax, depreciation and amortization to "a minimum" of $50 million from $97 million to $115 million. Analysts expected $90.3 million.

Paxton sais Dollar Thrifty's focus is on improving revenue diversification, fleet utilization, productivity and cost control.

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

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

Job Finder: Access Top Talent. Fill Key Positions.