05.11.2010

Hertz flat with smaller fleet

Hertz Equipment Rental has reported third quarter revenues fractionally up on last year from a fleet that is 11.2 percent smaller than at the same time last year.

Revenues for the nine months to the end of September were down almost seven percent to $784.1 million, generating a pre-tax loss of $31.6 million compared to a loss in the same period last year of $23.5 million.

The third quarter reflected the improving underlying trend with revenues virtually the same as the third quarter last year at $281.2 million. The business generated a pre-tax profit of $7.6 million, more than 250 percent up on the same quarter in 2009.

The average acquisition cost of the “revenue earning” rental fleet as of the end of September was just under 1.7 billion - 11.2 percent smaller than a year ago.

Hertz chief executive Mark Frissora said: "In the third quarter, we increased adjusted pre-tax income year-over-year for the fifth consecutive quarter and doubled GAAP pre-tax income compared with the third quarter of 2009. These third quarter, year-over-year improvements are attributable to 11.4 percent revenue growth in U.S. car rental, our largest business, strong performance by our European car rental unit and efficiency improvements, including lower fleet costs. Also, Hertz Equipment Rental generated revenue growth in the third quarter for the first time in two years, and recorded a 33.7 percent year-over-year improvement in adjusted pre-tax income as well as a corporate EBITDA margin of 40 percent.”