Due to weaker-than-anticipated airport car rental volumes, Hertz Global Holdings Inc. announced revised guidance for full-year 2013 revenues, adjusted pre-tax income, Corporate EBITDA, adjusted net income and adjusted diluted earnings per share.
According to Hertz, guidance for full year 2013 corporate cash flow is unchanged. Guidance is revised as follows:
"We are revising full year 2013 guidance primarily because of weaker-than-anticipated volume generated by the Hertz brand in the U.S. airport car rental market, our largest business," said Mark P. Frissora, Hertz’s chairman and chief executive officer.
"Weaker volume impacts not only revenues, but also generates related fleet issues, including lower utilization and the inability of the used car market to absorb our excess vehicles at current market prices. Fortunately, stronger pricing in the U.S. airport car rental market is helping to partially offset softer volume,” said Frissora.
"Despite these challenges, we anticipate Hertz will nevertheless generate record earnings for the full year, with adjusted pre-tax income up more than 30% year-over-year. Additionally, we are encouraged by the strong, ongoing performance of several of our businesses, including Hertz car rental off-airport, Dollar Thrifty, Donlen and HERC … " added Frissora.