Hertz Global Holdings said Monday that its first-quarter and full-year revenue and earnings will be less than previously forecast because "excess industry capacity" is pushing down car-rental pricing.
Hertz's first-quarter U.S. revenue per available car day (RACD) will fall about 3% from a year earlier. Full-year 2016 RACD will range from being flat to up 1.5%. Hertz had previously forecast 2016 RACD growth at about 2%.
"We are disappointed that the pricing pressure experienced late in 2015 further intensified in the first quarter of 2016," Hertz CEO John Tague said in a statement Monday. "However, we believe that industry capacity will likely moderate as seasonal demand improves establishing the foundation for a relative improvement in pricing as we head into the peak summer season."
Hertz said in late February that it turned both a fourth-quarter and full-year 2015 profit