Sixt is raising its earning forecast for 2021 after a stronger-than-expected third quarter and expects to achieve record earnings in 2021 as a result.

Sixt is benefitting from high demand into autumn in Europe and the U.S., as well from high car rental prices driven by high demand and the limited availability of vehicles due to the shortage of semiconductors, according to the company.

According to preliminary figures, Sixt’s consolidated operating revenue in the third quarter is expected to be approximately €795 million (Q3 2020: €460 million), while consolidated earnings before taxes (EBT) reached approximately €253 million (Q3 2020: €66 million). The average analyst’s EBT estimation of €226 million was significantly exceeded, the company reports.

Sixt continued with its internationalization strategy in 2020 by making strategic investments in certain growth markets, such as the U.S. Through the acquisition of 10 airport locations in 2020, Sixt has expanded its position as the fourth largest car rental company in the U.S.

As a result of these positive developments, the Sixt SE managing board has decided to raise the forecast again for financial year 2021. Sixt now expects consolidated operating revenue of between €2.1 billion and €2.3 billion, up from €2.0 billion and €2.2 billion, and consolidated EBT of between €390 million and EUR €million (previously: between €300 million and €330 million).

The latest average analyst estimates for quarterly and yearly revenue are in line with analysts’ expectations, the company said.

Sixt points to a still-volatile market and the continuing uncertainty of the semiconductor chip shortage as potential headwinds.