Hertz Global Holdings reported net income of $17.7 million in the third quarter, a precipitous drop from a year ago, when the company earned $162.7 million.
"Strategic actions to improve both liquidity and customer satisfaction" cost the company $58 million in the third quarter, said Hertz CEO Mark Frissora. These initiatives included accelerated fleet reduction, higher maintenance costs to prepare cars for sale, penalties for early turn-backs (the buy-back of a rental car by the auto manufacturer), increased advertising for refueling and service guarantees and higher gasoline costs associated with the refueling program.
Hertz also absorbed $85 million in restructuring costs, as the company eliminated 1,400 jobs and closed 80 locations in response to declining volumes in car rentals and equipment rentals.
"While these actions did not improve third-quarter results, we believe they better position the company to optimize liquidity going forward, especially in the fourth quarter when we generate most of our cash flow," Frissora said. "I am especially pleased that we finished the quarter with liquidity of approximately $4.6 billion."
Third-quarter revenue was $2.42 billion, a 1.1% decrease. International revenue comprised 37.5% of worldwide revenue, up from 35%.