Sixt Profits Dip in Q1
Performance attributed to lower demand due to the recessionary situation in Europe, partially offset by growth abroad.
Total consolidated revenue for global car rental and mobility service provider Sixt Aktiengesellschaft dropped 3.1% to EUR 369.1 million ($477.54 million) in the first quarter of 2013, the company reported this week.
The company recorded rental revenue of EUR 211.8 million ($274.03 million), which was 1.8% below the same period last year, or EUR 215.7 million ($279.07 million). Consolidated earnings before taxes (EBT), the Sixt Group’s key earnings indicator, came to EUR 22.3 million ($28.85 million), or EUR 3.7 million ($4.79 million) less than the previous year period of EUR 26.0 million ($33.64 million).
After taxes, Sixt recorded a profit of EUR 15.4 million ($19.92 million) for the first quarter of 2013, from EUR 17.9 million ($23.16 million) in the first quarter of 2012.
The company attributed the quarter’s performance on lower demand due to the recessionary situation in Europe, lower revenue from the sale of used leasing vehicles and start-up costs for strategic growth initiatives. The earnings dip was partially offset by “continued dynamic growth abroad,” the company reported.
"Sixt has kept up well in the first quarter. We managed to almost balance out the slackened demand in the rental business we had expected with our expansion steps abroad,” said Erich Sixt, chairman of the managing board of Sixt AG, in a statement. “In the Leasing Business Unit we are back on a growth track thanks to a higher contract portfolio. We continue our projection for another satisfactory earnings position for the full year 2013. At the same time we will vigorously drive forward all our growth initiatives across the board."
The Sixt management board confirmed its previous projections for the full year 2013. Sixt expects domestic demand in the Vehicle Rental Business Unit to weaken and consolidated rental revenues to contract slightly in 2013, “while the growth path in the other European countries and the USA is set to continue,” the company said.
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