Hertz reports lower third quarter earnings

Hertz Global Holdings, the U.S. car and equipment rental company, announced on Wednesday that it will not meet its latest forecasts due to reduced demand, and indicated that it would not estimate earnings again until the economy improves.

The company said that its net income for the third quarter fell to $17.7 million, from $162.7 million for the same quarter in 2007. Adjusted diluted earnings per share fell from 65 cents to 33 cents.

Analysts had anticipated earnings of around 53 cents, Reuters Estimates indicated.

Hertz’s revenue decreased by 1.1 percent, to $2.4 billion. Revenue from the rental car business for the quarter increased slightly, by 0.2 percent to $2.0 billion, but revenue from the equipment rental business decreased by 6.8 percent, to $433.1 million.

Mark Frissora, the group chairman and CEO, indicated in a statement that employee headcount was being reduced by 1,400 and 80 locations were being closed.

The company took $85 million in restructuring charges related to these actions during the third quarter.

The Park Ridge, New Jersey-based company noted that it also recently increased its prices in major rental markets, for both cars and equipment, Frissora added.

Hertz reported a total debt of $12.8 billion at the end of the quarter.

www.hertz.com