05.08.2010

Decline continues at Hertz Equipment

Hertz Equipment has reported its first half results which show a decline in revenues of just under 10 percent to $502 million, the pre-tax losses increased to $39 million from a loss of $26.5 million last year.

The second quarter showed an improve although still negative trend with revenues down five percent to $265.8 million, while the non adjusted pre-tax loss was $15.8 million compared to a loss of $1.7 million in the same period of 2009. (Hertz says that after all adjustments and one off restructuring charges the company made net profits of $14.4 million compared to $24.7 million last year)

The average acquisition cost of the rental fleet as of the end of June was down by 4.9 percent compared to June 2009.

Chief executive Mark P. Frissora said: "The best example of our successful growth and efficiency strategy is the record second quarter 2010 performance of our largest business, U.S. car rental. Compared with the pre-recession second quarter of 2007, U.S. RAC generated $32.5 million higher adjusted pre-tax income this year, representing a 350 bps margin improvement over 2007, on 7% lower revenues. We have significantly reduced fleet and other costs Furthermore, we believe our other two major businesses, European car rental and Hertz Equipment, will achieve similar results when their volume levels increase closer to 2007 levels.".