Car rental firm Dollar Thrifty has raised its earning expectations in an update on preliminary estimates for second quarter results.
The now expects second quarter corporate adjusted EBITDA to be within a range of $70 million to $75 million, up significantly from $20.9 million in the comparable quarter of 2009.
This is despite $5 million of expenses incurred due to the proposed merger with Hertz.
For the year as a whole the company now expects corporate adjusted EBITDA (excluding expenses related to the Hertz transaction) to be within a range of $200 million to $220 million for the full year of 2010.
This is in contrast to the previously estimated figure of $170 - $190 million.
In 2009 the company made a profit of $99.4 million.
Despite the positive outlook for the present quarter, however, the Tulsa-based group is lowering its guidance for vehicle rental revenue for the full year of 2010 to an increase of one to two per cent compared to 2009.
This is down from its prior guidance of two to four percent.
In addition, the company lowered its expected fleet cost target from $275 per unit per month to a range of $245 to $255 per month.
In June Dollar Thrifty confirmed its Rental Car Finance subsidiary had completed a private placement of Rental Car Asset Backed Variable Funding Notes, to the value of $300 million.