Avis Budget Profit Up On Sales Growth
Car rental company Avis Budget's third quarter net profit rose sharply to USD$280 million on a 34 percent revenue increase.
Revenue for the quarter to September 30 was USD$2.17 billion. Total expenses jumped 28 percent in the quarter.
The car rental industry, tied closely to airline traffic and hotel bookings, has seen both business and leisure travel demand picking up in the last few quarters.
Rival Hertz reported a better-than-expected quarterly profit on Wednesday as rental revenues increased.
But Avis's large exposure to Europe weighed on its outlook for the year. It acquired Avis Europe for about USD$1.03 billion in 2011 to expand its presence in the region.
Avis, whose fleet was more than 393,000 vehicles in 2011, cut the upper-end of its earnings before interest, taxes, depreciation, and amortisation (EBIDTA) forecast to USD$840 million from USD$875 million.