Dollar Thrifty losses heavier in 4Q

The Dollar Thrifty Automotive Group has posted bigger losses for the fourth quarter as rental car demand continues to slow and vehicle resale values fall.

According to the rental car company, its losses more than doubled, reaching $72.2 million, over the $30.6 million reported for the same quarter in the previous year. Revenue decreased by 8.8 percent, down to $355.1 million, from $389.2 million for the same quarter in 2007.

With one-time charges excluded, the company’s losses amounted to $1.82 per share. Thomson Reuters surveyed analysts who indicated that they expected the loss to be smaller, amounting to around $1.28 per share on revenue of $342.6 million. Analyst estimates generally exclude one-time charges.

Dollar Thrifty rents vehicles through its Dollar Rent-A-Car and Thrifty Car Rental brands, and has said that it anticipates a full-year drop in vehicle rental revenues of six to 12 percent. It did not offer an earnings forecast, but said that it was actively reducing operating costs, by cutting jobs and fleet sizes and also closing underperforming locations.

The decline in demand for car rentals and the sharp drop in vehicle resale values continue to impact the major rental car companies, including Dollar Thrifty. For the full year, Dollar Thrifty said that it losses reached $340.4 million, compared with $1.2 million in profits in 2007.

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