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Hertz Reports Net Loss of $223M

For the first quarter 2017, Hertz Global Holdings Inc. reported declines in revenue and earnings. Hertz’s total revenues were $1.9 billion, a 3% decline year-over-year, while adjusted earnings were negative $110 million — compared to positive $27 million in Q1 2016.

by Staff
May 8, 2017
Hertz Reports Net Loss of $223M

Photo courtesy of The Hertz Corp.

2 min to read


Photo courtesy of The Hertz Corp.

For the first quarter 2017, Hertz Global Holdings Inc. has reported its total revenues as $1.9 billion, a 3% decline versus first quarter 2016.

Adjusted earnings for Q1 were negative $110 million compared to positive $27 million in the same period last year, according to Hertz.

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For the third quarter, Hertz reported a net loss (from continued operations) of $223 million, including $30 million of impairment charges. This is compared with a net loss of $52 million during the same period last year. Before income taxes, Hertz’s net loss was $294 million versus $76 million in Q1 2016.

For the U.S., Hertz’s total RAC revenues were $1.4 billion in Q1, a decrease of 4% from last year. Transaction days decreased by 1% year-over-year, primarily driven by one less rental day since 2016 had Leap Day. According to Hertz, pricing dropped 3% in Q1 impacted by an unfavorable customer mix, which the company is looking at in its long-term improvement plan. Adjusted earnings for Q1 were negative $104 million, a $130 million decline from last year.

“As previously outlined, we are executing on a turnaround plan that puts our customers at the center of everything we do,” said Kathryn V. Marinello, president and CEO of Hertz. “Our goal is to strengthen the business to drive predictable, sustainable growth over the long term. While we are mindful of today's headwinds related to used car residual values, our commitment to investing in the business remains steadfast. In particular, we are placing significant emphasis on fleet quality, the customer experience, brand development, and systems transformation. These investments are critical to rebuilding our position as a leader in the global rental car market. While our performance doesn't yet reflect our investments and may continue to be uneven, we are seeing signs of progress.”

In Q1, U.S. RAC net vehicle depreciation per unit per month increased 15% to $348, primarily driven by seasonally weak residual trends. Hertz continued its fleet optimization plan by selling 21% more vehicles year-over-year, according to the company. U.S. vehicle utilization was lower by 3 percentage points in Q1.

Hertz’s total international RAC revenues were $411 million in Q1, a decrease of 5% from Q1 2016. Excluding a $6 million impact of foreign currency exchange rates, revenues dropped 4% due to a 4% decrease in total revenue per transaction day (RPD), according to Hertz.

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