Budget Group Inc. reported a pre-tax loss of $89.4 million for the first quarter of 2001. In comparison, the company's pre-tax loss for the first quarter of 2000 was $55.2 million. Budget attributed one-third of the first-quarter loss to the reorganization of its European operations.

"We are on target in the execution of our European refranchising strategy that will return our international segment to profitability," said Sandy Miller, Budget Group chairman and CEO. "Domestic car and truck operations during the quarter performed to plan as cost reduction initiatives, and asset utilization efforts helped reduce the impact of the slowing U.S. economy on our business. We are pleased with the progress in our truck rental operations and the significant improvements in utilization and operating margin."

Domestic car rental utilization jumped 180 points to 84.4%. But, as expected, the depressed industry pricing environment drove domestic car rental revenue per day down 2.7%, compared to the first quarter in 2000 when rates were up more than 4%.

Truck rental operating margins improved by 120 basis points over the previous year. Truck utilization increased 390 basis points, and revenue per unit increased 5.6% as efforts to reduce truck fleet brought average fleet for the quarter down 11.3% to 40,358 units.