Hertz Forecasts Strong 2013

February 25, 2013

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Hertz reported a quarterly loss due to costs related to its acquisition of Dollar Thrifty, but the car rental company forecast strong results for 2013 on higher pricing.

Hertz's net loss was USD$36.4 million in the fourth quarter, compared with net income of USD$52.1 million a year earlier.

Revenue rose 15 percent to USD$2.3 billion.

Hertz forecast adjusted earnings of USD$1.82 to USD$1.92 per share for 2013 on revenue of USD$10.85 billion to USD$10.95 billion.

Hertz is off to a "fast start" for the year, chief executive Mark Frissora said in a statement on Monday.

Car rental revenue per transaction day at US airports was up 6.0 percent for Hertz and 2.6 percent for Dollar Thrifty in January, Frissora said.

Hertz acquired smaller rival Dollar Thrifty for USD$2.6 billion in late 2012 after agreeing to give up 29 Dollar Thrifty airport locations and sell its low-cost Advantage brand.

The acquisition is expected to save the merged company at least USD$160 million annually and cement Hertz's number two position in the global car rental rankings behind privately held Enterprise.

Synergies from the acquisition are likely to exceed earlier forecasts, Hertz said.