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

Name:  
Email:  
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

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Hertz, Avis Autonomy Partnerships: Good First Steps on a Long Path

Two new autonomous vehicle project partnerships bring the importance of fleet management to the fore.

An Inside Look at Car Rental in China

A trip to a new car rental convention in Guangzhou reveals a booming market, yet one facing unique challenges.

Job Finder: Access Top Talent. Fill Key Positions.

>