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Hertz Cuts Forecast Due to Weak Airport Car Rental Volumes

Thursday, 26 Sep 2013 11:47 AM

Hertz Global Holdings Inc., the No. 2 U.S. car rental company, cut its full-year forecast due to weaker-than-expected volumes in its airport car rental business.

The U.S. car rental industry is tied closely to airline traffic and hotel bookings, which face cuts in travel spending by government departments and the defense industry after a strong summer travel season.

Hertz, which got a boost from its purchase of rival Dollar Thrifty last year, said weaker volumes in the rental business, the company's biggest, also create fleet-utilization issues.

"Fortunately, stronger pricing in the U.S. airport car rental market is helping to partially offset softer volume," Chief Executive Mark Frissora said in a statement.

Hertz said it now expects full-year adjusted earnings of $1.68-$1.78 per share, down from its previous forecast of $1.78-$1.88, based on 465 million shares.

The company cut its revenue forecast to $10.8-$10.9 billion from $10.85-$10.95 billion.

Hertz shares, which have gained 10 percent in the last three months, closed at $25.78 on the New York Stock Exchange on Wednesday.

© 2017 Thomson/Reuters. All rights reserved.

   
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Hertz Global Holdings Inc., the No. 2 U.S. car rental company, cut its full-year forecast due to weaker-than-expected volumes in its airport car rental business.
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Thursday, 26 Sep 2013 11:47 AM
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