02.05.2013

Hertz triples profits

Hertz Equipment Rentals has reported a 16.2 percent increase in first quarter revenues to $ 351 million while pre-tax profit more than tripled to $32.1 million, from $10.2 million in the same quarter last year.

The primary drivers of the increase were stronger rental volumes - up 15.7 percent, and a 3.6 percent increase in pricing/rental rates. Volume increased on strong industrial and improving construction performance.

The group- including car rental achieved revenues of $2.44 billion over 23 percent up on the same quarter in 2012. At the same time the group turned a loss of $36.8 million last year into a profit this year of $72.2 million.

Hertz group chief executive Mark Frissora said: "We have now achieved record year-over-year adjusted pre-tax income seven consecutive quarters and increased employee productivity 26 consecutive quarters. Our record first quarter 2013 results were driven by year-over-year, double-digit revenue and pre-tax margin growth in the car and equipment rental and leasing businesses, especially in North America. Dollar Thrifty is performing better than anticipated, with integration and synergy progress exceeding our targets."

Vertikal Comment

This is a very solid recovery from Hertz, as it continues to bounce back from the recession. The equipment business, while perhaps less focussed than the equipment specialists like United and NES etc… Hertz Equipment does seem to be on the right path and making substantial improvements to its business which are bound to help with its on-going international aspirations and efforts.

A strong and very encouraging result