05.11.2012

Hertz up 12.5%

Hertz Equipment Rental has reported a 12.5 percent improvement in revenues with a sharp improvement in profits.

Total equipment revenues for the nine months to the end of September were $1 billion up 12.5 percent on the year. Pre-tax profits for the period more than quadrupled to $101.1 million.

Looking at the third quarter revenues were $363 million 12.8 percent up on the same period last year. Revenues in the USA were up 18.6 percent, while North America as a whole saw a 17.1 percent – overseas income was badly hit by currency fluctuations.

Pre-Tax profits for the period were $63 million up almost 40 percent on last year, primarily attributable to the effects of increased volume and pricing and cost management initiatives.

Chief executive Mark Frissora said: " I am especially pleased with our ability to improve the consolidated adjusted operating margin 260 bps in the third quarter despite soft global macro-economic conditions. Margin improvement was driven by a 220 bp decline in consolidated adjusted direct operating and selling, general and administrative expenses as a percentage of sales, and $145 million of incremental efficiency savings. Additionally, Hertz Equipment’s 18.6 percent U.S. revenue growth in the third quarter easily outpaced the competition as we gained momentum in new markets and with new fleet,"