Car hire agent reports second quarter profits

The Dollar Thrifty car rental company reported second quarter profits rose by 15 per cent as it seemed their cost cutting plans have worked. Shares for the company followed suit and rose by 19 per cent to $19.10 eclipsing their record low of just 60 cents in March 2009.

The company who have published losses in four of the previous seven quarters have also narrowed down their projected revenue for 2009, saying they expect it to fall to between eight and ten per cent compared to their earlier forecast of between six and 12 per cent. They have managed to stabalised the loss in rental days by increasing the average cost per day.

“We were pleased with this quarter’s operating results, particularly in light of the contracting economy and the bankruptcy of Chrysler, one of our major suppliers. Over the past two quarters, we have taken a number of steps to enhance our operating performance and cash flow, and those actions, combined with improved used vehicle residual values and firmer rental pricing, drove our improved second quarter performance,” said the chief executive, Scott L Thompson.

Two of their competitors Hertz Global Holdings Inc. and the Avis Budget Group, both reported losses this week.

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