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

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>