Hertz car rental agent reports drop in revenues

Hertz Global Holdings Inc. has reported a drop of 22.9 per cent in revenues for the second quarter of 2009 against the same period last year. This equated to a difference of more than $520 million. That fall is higher than the world average of 19.4 per cent drop for the same period.

“In the second quarter we continued to make solid progress mitigating the effects of lower revenues attributable to the recession. Our cost reduction efforts are on target and we expect to achieve annualised savings of at least $570 million this year. Additionally, volume and pricing trends have improved for the summer car rental peak in Europe and the US,” said the chief executive officer of Hertz, Mark Frissora.

There was a hit of $33.3 million due to company restructuring including job losses and closures of rental locations in this second quarter but they expect those charges will be minimal for the following 2010 year.

All is not lost for Hertz though as they expect that 2009 will see them receive around $7 billion in revenue as the car rental market slowly starts to pick up. A reduction in the fleet has also added to their total revenues being down for the last quarter.

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