Hertz reports significant year-over-year second quarter improvement

Hertz reports significant year-over-year second quarter improvement

Hertz Global Holdings has posted strong second-quarter results, with a boom in travel demand and lower depreciation costs both assisting.

As a result, the firm - which raised its bid for Dollar Thrifty earlier this year - boosted its 2011 outlook.

Hertz now expects 2011 adjusted earnings of 91-96 cents a share, up from its prior outlook of 85-90 cents a share.

New Jersey-based Hertz also raised its 2011 revenue forecast to $8.15-$8.25 billion.

This is up from the prior level of $8.10-$8.20 billion.

Chairman Mark Frissora said: “Second quarter 2011 adjusted pre-tax income beat our 2007 pre-recession second quarter by over $27 million, on $100 million lower revenues, with pre-tax margins which were 170 bps higher than 2007, and 380 bps above last year.

“These excellent results were attributable to strong year-over-year profit improvement in U.S. rent-a-car and our equipment rental businesses, despite major investments in our strategic initiatives.”

The car rental industry, which is tied closely to hotel bookings and airline traffic, is benefiting from an uptick in travel demand.

Worldwide car rental revenues rose 10 per cent to $1.8 billion.