Hertz's Q2 Profit Drops 39 Percent

Hertz Global Holdings Inc. said its second-quarter profit dropped 39 percent, attributing the drop in profit to higher restructuring costs.

Hertz also attributed the drop in profit to the non-cash write-off of deferred debt costs related to its European fleet financing arrangement, and the change in the mark-to-market values on its interest rate derivative contracts.

Hertz said it posted a profit of $51.2 million, or 16 cents per share, compared with $83.7 million, or 26 cents per share, for the same quarter in 2007.

Revenue rose 4.6 percent to $2.28 billion from $2.18 billion in the year-ago period.

Hertz Chairman and CEO Mark Frissora said the second quarter was challenging for the rental industry because of a difficult economic environment as evidenced by lackluster GDP growth and lower consumer confidence.

But he said the company maintained a strong focus on cost control and efficiency as well as cash management, which enabled it to offset the industry-wide softer volume and pricing pressures experienced in the quarter.

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

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.