Hertz Quarter 1 Results Hit Record Proportions

Hi all,

I’m giving you a one day break from me banging on about all the great new
features we’ve introduced since our latest re-design to talk briefly about Hertz’s quarter 1 results.

Released on May 2nd, Hertz were very happy to report adjusted net income of $19.4 million, versus a loss of $14.2 million in the same period of 2011. Loss before income taxes, on a GAAP basis, was $36.8 million, versus a pre-tax loss of $158.9 million in the first quarter of 2011.

Worldwide car rental revenues for the quarter increased 9.8% year-on-year to $1.66 billion. Worldwide car rental adjusted pre-tax income for the first quarter of 2012 was $91.6 million, an increase of $30.3 million from $61.3 million in the prior year period.

Mark P. Frissora, the Company’s Chairman and Chief Executive Officer, said,

“We are gratified by strong first quarter 2012 results, further validating our long-term, balanced approach to running global businesses, which generated double-digit revenue and profit growth despite difficult conditions in Europe.”

Looking at the report which can be seen here Hertz look to have produced such great results by

  • Increased volume
  • Robust residual values
  • Strong cost management performance, partially offset by a decrease in rental rate revenue per transaction day (“RPD”)
  • A strong showing from it’s value brand Advantage Rent A Car.
  • Increased activity in City areas.
  • and interestingly an increase in U.S. citizens pre-booking their hire cars!

The last point is interesting in the fact that usually U.S. citizens will roll up at the desk and look to book. The growing trend of American’s pre-booking their vehicles could have a very real negative effect on UK availability and rates, as the amount of cars reserved for our inbound market could be decreased to sustain the more profitable domestic market!!!

Hertz also are continuing their commitment to install their car sharing technology in there entire fleet!! How do you think this will effect traditional car rental models?  

regards,

James

 Florida car hire

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