Dollar Thrifty reports reduced losses in first quarter

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The rental car giant, Dollar Thrifty Automotive Group, reported that its losses narrowed during the first quarter of this year, helped by decreased operating expenses, but that it expects its fleet costs to remain a major challenge.

According to the group, it is fully-compliant with all financial covenants under the various agreements it has with lenders.

Its reported net loss for the first quarter was $8.9 million, or 42 cents per share, as compared with a $297.9 million net loss, or $14.07 per share, for the same quarter last year.

When items are excluded, the net quarterly loss was 55 cents per share. Overall revenue fell by nine percent, down to $362.4 million.

An industry analyst said that they expected Dollar Thrifty to post a loss of 42 cents per share on revenues of $367.6 million, according to a Reuters Estimates report.

Administrative, general and selling expenses decreased by 13 per cent for the quarter, to $46.9 million.

The Dollar Thrifty exposure to Chrysler, which is its primary vehicle supplier, has been reduced further since March 31, it was reported in a statement issued by the company.

Shares of Dollar Thrifty, which rents vehicles under the brands Dollar Rent A Car and Thrifty Car Rental, closed at $4.73 on Tuesday in New York trading.

For more information on this article please visit www.reuters.com.

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