Hertz and Dollar Thrifty each report climbing rental volume

By Danny King
Hertz Global Holdings and Dollar Thrifty Automotive Group each reported higher third-quarter revenue on Thursday, as higher car-rental volume more than offset lower daily rates.

Profit at Hertz, which in August reached an agreement to acquire Dollar Thrifty, jumped 18% from a year earlier. Dollar Thrifty’s profit fell 17% on merger-related expenses and reduced gains in the used-vehicle market.

Hertz’s revenue rose 3.4% to $2.52 billion, as worldwide car rental revenue rose 5.3%, excluding currency effects. U.S. transaction days rose 6.1%, more than offsetting a 2.8% decline in revenue per rental day.

Net income rose to $242.9 million from $206.7 million on the combination of higher revenue and lower operating and interest expenses.

Meanwhile, Dollar Thrifty’s revenue rose 2% to $460.1 million, as a 7.1% increase in revenue days more than offset a 5.1% decrease in revenue per rental day.

That said, Dollar Thrifty’s net income fell to $55.5 million from $66.6 million a year earlier, as the company incurred $5.7 million in merger-related expenses.

Dollar Thrifty's gains on sales of so-called "at-risk vehicles," or cars that are purchased new from manufacturers without a pre-set resale price, fell $12.2 million from a year earlier.

Still, Dollar Thrifty boosted the lower end of its 2012 earnings forecast, excluding some items, by $15 million to $300 million.

In August, Hertz agreed to acquire Dollar Thrifty for $2.6 billion after a 28-month courtship. Last month, Hertz said it agreed to give the Federal Trade Commission until Nov. 16 to review the agreement.

Follow Danny King on Twitter @dktravelweekly.
This page is protected by Copyright laws. Do Not Copy. Purchase Reprint
blog comments powered by Disqus

View Comment Guidelines

Please upgrade your Flash Player.
Please upgrade your Flash Player.

Travel Weekly Poll

Voices

  • Consumer media discover that travel agents do exist

    "Contrary to some thoughts, travel agents do exist ... We are usually able to get clients better prices, and we know we can see that clients have better experiences. And as our personal motto is: Our Service Travels With You."

    More»

TW Index: Most Active Stocks

Latest Top News:
Caribbean
Europe
Travel Weekly is on Facebook
Viewpoints For Travel Agents
Travel Weekly Topics