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Hertz beats forecasts but Dollar Thrifty deal costs dent earnings
CAR rental group Hertz yesterday reported a quarterly loss due to costs related to its acquisition of Dollar Thrifty, but adjusted profit beat analysts’ expectations and the US firm forecast strong results for 2013 on higher pricing.
Hertz, which acquired Dollar Thrifty for $2.6bn (£1.7bn) in late 2012, said it expects cost synergies of $300m from the acquisition from 2013 through 2015, and revenue synergies of $300m over the same period, exceeding prior forecasts.
For the quarter, Hertz’s net loss was $36.4m compared with net income of $52.1m a year earlier, on revenues 15 per cent higher at $2.3bn.
Hertz is off to a “fast start” for the year, said boss Mark Frissora.