PARK RIDGE, N.J. -- Hertz Corp. reported a pre-tax profit of $144 million in the second quarter of 2004, compared with a $57 million profit during the same period a year ago.
In Hertz's quarterly report released June 30, the company reported net income of $95.5 million in 2004, representing a 141.1% increase from $39.6 million in 2003. Hertz attributed the gains to “higher rental volume in the company’s worldwide car rental business, lower fleet costs and improved cost performance.”
The company's car rental revenue for the first six months of 2004 totaled $2.24 billion, compared to $1.97 billion during the first half of 2003.
During the first six months of 2004, Hertz purchased Ford vehicles at a cost of approximately $2.8 billion, according to the SEC filing. Hertz sold Ford vehicles to the automaker or its affiliates, under various repurchase programs, for about $1.8 billion.
The report also disclosed that Hertz and Ford tentatively approved the terms of a new joint advertising agreement and a new car supply agreement. They will commence Sept. 1 and extend three years, covering the 2005 through 2007 vehicle model years.