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Hertz Posts $474M Net Loss for 2016

For full-year 2016, Hertz Global Holdings Inc. has reported total revenue of $8.8 billion, a decrease of 2% from $9 billion for 2015. In 2016, Hertz’s net loss was $474 million compared to $115 million in 2015.

by Staff
February 28, 2017
Hertz Posts $474M Net Loss for 2016

Photo courtesy of The Hertz Corp.

2 min to read


Photo courtesy of The Hertz Corp.

Hertz Global Holdings Inc. has released its 2016 fourth quarter and full-year operating results.

For full-year 2016, total revenue was $8.8 billion, a decrease of 2% from $9 billion for 2015, according to Hertz. Adjusted net income was $41 million compared with an adjusted net income of $205 million for the same period last year. Adjusted earnings for 2016 were $553 million versus $858 million for 2015.

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For the full-year, Hertz reported net loss from continuing operations of $474 million, including full-year impairment charges of $285 million. In 2015, Hertz’s net loss from continuing operations was $115 million, according to the company.

In the fourth quarter, total revenues were $2 billion, a 1% decline compared to fourth quarter 2015, according to Hertz. Loss from continuing operations for Q4 was $466 million, including $309 million of impairment charges — compared to $52 million net loss in fourth quarter 2015. Adjusted earnings for Q4 were $12 million compared to $94 million in Q4 2015 — a decline of 87%.

Total U.S. RAC revenues were $1.4 billion in Q4, flat versus the same period last year, according to Hertz. Transaction days increased 1% while pricing decreased by 1% year-over-year. U.S. RAC vehicle carrying costs rose 23% or $85 million in the fourth quarter. This year-over-year increase was driven by a decline in residual values for current and future vehicle sales, the company reported.

"The company's 2016 performance resulted from issues around fleet and service, which we are addressing," said Kathryn V. Marinello, Hertz’s president and CEO. "In the U.S., we are upgrading the quality and mix of the fleet and rolling out our more flexible Hertz Ultimate Choice offering, both of which enable customers to get the cars they want, when they want them.

"In terms of service, we have great employees with the right attitude. We are taking action to ensure that they have the tools and training to consistently deliver best-in-class service that shows our customers we care. 2017 investments in fleet, service, marketing, and technology will be the catalyst to ultimately generating steady top-line growth."

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