Car rental giant Hertz sees demand steadying

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Hertz, the second-largest US rental car operator, is expecting that it will return to profitability in the second quarter of 2009, citing the stabilizing of rental demand.

In a statement issued by the company, it indicated that it will be reporting an earnings adjustment from nine cents per share to 10 for the second quarter and from 12 to 15 for the full year. Its revenues will be in the range of $1.70-1.75 billion for the quarter and $6.7-7.0 billion for the full year, the Hertz statement said.

Hertz posted losses for two consecutive quarters on cutbacks in both business and leisure travel resulting from the economic downturn. Before interest, taxes, depreciation and amortization, Hertz forecast earnings of $900-935 million for this year, and is working toward increasing its annualized cost savings by $70 million – to $570 million.

Mark Frissora, the CEO of Hertz, said in the company’s statement: “Car-rental demand in the U.S. and Europe has stabilized and we are experiencing better than anticipated summer-peak reservation build in both markets,” adding: “We are adding fleet as a result.”

In a CNBC interview, he went on to say: “Most of what we see of demand is in the leisure market. That market has really improved a lot.”

Thanks to www.latimes.com for the above quotes, for more information on this article please visit their website.

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