Auto Rental News
MenuMENU
SearchSEARCH

Hertz Reports Year-Over-Year Second Quarter Improvements

Including record U.S. car rental adjusted pre-tax income for the second quarter, Hertz Global Holdings established several second quarter earnings records.

by Staff
July 30, 2012
3 min to read


Hertz Global Holdings Inc. reported second quarter 2012 worldwide revenues of $2.2 billion, an increase of 7.4% year-over-year — a 10.3% increase excluding the effects of foreign currency.

Worldwide car rental revenues for the quarter increased 6.8% year-over-year (a 9.9% increase excluding the effects of foreign currency) to a record $1,889.6 million.

Ad Loading...

Second quarter 2012 adjusted net income was a record $154.4 million, versus $116.6 million in the same period of 2011.

"We delivered strong revenue and earnings growth again in the second quarter of 2012, and achieved several record results, despite moderate global GDP growth,” said Mark P. Frissora, the company's chairman and CEO. “Our second quarter 2012 results are a testament to fostering a culture of continuous improvement as we delivered a 390 basis point improvement in direct operating expenses and $107 million in incremental efficiency savings for the quarter."

Worldwide Car Rental

Hertz globally achieved record transaction days for the quarter, which increased 7% over the second quarter of 2011 — 10.1% U.S.; 0.1% International.

U.S. off-airport total revenues for the second quarter increased 12.5% year-over-year, and transaction days increased 17.4% from the prior year period. Worldwide rental rate revenue per transaction day ("RPD") for the quarter decreased 3.4% — 3.1% U.S.; 3.2% International — from the prior year period.

RPD continues to be impacted by the shift in Hertz’s mix between airport and off-airport rentals, the company reported.

Ad Loading...

Worldwide car rental adjusted pre-tax income for the second quarter of 2012 was a record $277.4 million, an increase of $35.2 million from $242.2 million in the prior year period. The result was driven primarily by increased volume, strong cost management performance and lower net depreciation per vehicle, partially offset by a decrease in RPD. As a result, worldwide car rental achieved a record adjusted pre-tax margin of 14.7% for the quarter, versus 13.7% in the prior year period.

The worldwide average number of company-operated cars for the second quarter of 2012 was 656,200, an increase of 34.7% over the prior year period, largely as a result of the Donlen acquisition, and a 4.6% increase year-over-year excluding the effects of the Donlen acquisition.

Commenting on the results of the company's car rental business, Mark Frissora said, "U.S. rent-a-car continues to generate record operating results and we are especially pleased by the performance of the Advantage brand which grew revenues approximately 42% in the second quarter."

Revenues from worldwide equipment rental for the second quarter were $335 million — up 11.0% year-over-year (a 13.1% increase excluding the effects of foreign currency), driven by an 18.8% revenue increase in the U.S. and 15.2% in North America.

Adjusted pre-tax income for worldwide equipment rental for the second quarter of 2012 was $42.5 million, an improvement of $9.1 million from $33.4 million in the prior year period.

Ad Loading...

Outlook

The company reaffirms its full-year 2012 revenues, corporate EBITDA, adjusted pre-tax income, adjusted net income and adjusted diluted earnings per share guidance provided on May 2, 2012. The company expects to generate worldwide revenues in the range of $8.9 billion to $9 billion, corporate EBITDA in the range of $1.6 billion to $1.66 billion, adjusted pre-tax income in the range of $870 million to $940 million, adjusted net income in the range of $570 million to $620 million and adjusted diluted earnings per share in the range of $1.28 to $1.38 (based on 450 million shares).



To see when other company's will release second quarter results or to see first quarter results, click here.

More Rental Operations

Collage of cleaning car interior
Rental Operations•November 5, 2026

How Better Cleaning Processes Improve Rental Fleet Efficiency

A consistent approach to vehicle cleaning helps rental operators reduce turnaround delays and return vehicles to service without compromising cleanliness.

Read More →
Paperwork sits in front of a black Lamborghini
Rental Operations•November 1, 2026

Clean on Paper: Red Flags in Exotic Car Rental Verification

A suspicious $45,000 Lamborghini booking reveals the strengths and limitations of renter verification, from forged insurance documents to coverage gaps and unauthorized drivers. (Part 2 of 3)

Read More →
display of Turo's FSD homepage
Rental Operations•by Chris Brown•October 28, 2026

Turo and Tesla Take the Next Step Toward Autonomous Car Rentals

The partnership brings Tesla's Full Self-Driving (Supervised) technology into the rental experience, offering a glimpse of how increasingly automated vehicles could change car rental.

Read More →
Ad Loading...
Two identical rental cars, two different prices
Rental Operations•Cover Story•October 26, 2026

How Rental Operators Can Navigate Personalized Pricing Rules

As regulators scrutinize the use of customer data in pricing, rental operators need to know whether they can explain why one renter pays more than another.

Read More →
a laptop shows different connectivity paths for car rental supply
Rental Operations•October 23, 2026

Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars

As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.

Read More →
thumbnail of title and photo of Joel Price and Chris Brown
Rental Operations•by Chris Brown•October 20, 2026

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?

With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.

Read More →
Ad Loading...
thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
Ad Loading...
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
Ad Loading...