Hertz Reports Improved 1Q Results

Hertz Global Holdings Inc. reported first quarter 2010 worldwide revenues of $1.7 billion, an increase of 6.1 percent year-over-year (a 2.3 percent increase excluding the effects of foreign currency).

Worldwide car rental revenues for the quarter increased 10.8 percent (a 7 percent increase excluding the effects of foreign currency) to $1.4 billion. Revenues from worldwide equipment rental for the first quarter were $237.0 million, down 15.2 percent (a 19.1 percent decrease excluding the effects of foreign currency) over the prior year period.

First quarter 2010 adjusted pre-tax loss was $69.2 million, compared to a loss of $116.6 million in the year-ago period. Loss before income taxes ("pre-tax loss"), on a GAAP basis, was $157.8 million, compared to a loss of $210 million in the first quarter of 2009. Corporate EBITDA for the first quarter of 2010 was $121.4 million, an increase of 32.1 percent from the same period in 2009.

First quarter 2010 adjusted net loss was $49.3 million, compared to a loss of $80 million in the year-ago period. First quarter 2010 net loss, on a GAAP basis, was $150.4 million, compared with a net loss of $163.5 million for the first quarter of 2009.</p>
 
"We have improved year-over-year operating performance for the third consecutive quarter, due in part to strong cost management companywide and almost 10 percent revenue growth in U.S car rental, our largest business. Our cost savings projections are on track and we have strong advanced reservation growth for the U.S. and European car rental businesses, especially during the summer peak," said Mark P. Frissora, Hertz's chairman and chief executive officer.

He said the company's equipment rental business continues to be a challenge, but its performance is improving in Canada and Europe. He added that U.S. business is emerging from the trough of the recession and the company has an overall positive outlook.

Hertz said it took $16 million in restructuring and related charges in the first quarter of 2010, which were associated with job reductions, the closure of rental locations and process reengineering. Hertz said it expects the restructuring and related charges to diminish significantly throughout the remainder of 2010.

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