Hertz Global Holdings' revenue declined 2% year over year to
$2.2 billion in the second quarter as both transaction days and pricing
declined in the U.S.
Revenue per day for U.S. rentals declined 2%, due in part to
weaker ancillary revenues. President and CEO Kathryn Marinello said pricing for
business travel rentals will continue to face pressure in the months ahead. "We
didn't see significant downturns in commercial pricing, but I don't think that's
an area we're going to be able to see much movement upwards, due to the
competition," she said.
U.S. transaction days were down 3%, though that largely
stemmed from lower off-airport volume that compared with "unusually high
customer vehicle recall activity" in the second quarter of 2016, according
to Hertz.
Outside the U.S., revenue increased 1%, to $543 million.
Transaction days increased 6% and pricing declined 1%.
Hertz reported a net loss of $158 million for the quarter,
compared with a $28 million net loss in the second quarter of 2016. The company
has been taking a depreciation hit as it upgrades its U.S. fleet, a process
that is now complete, Marinello said, and it is spending more than $200 million
this year for technology and facility upgrades.
"After a tough first half that focused heavily on
getting the right fleet, rolling out our Ultimate Choice process, upgrading our
financial and revenue management systems and assessing service opportunities,
we've now made some great progress that we can build on," Marinello said.
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Source: Business Travel News