Sixt AG Reports Good Q1 Results

Sixt AG, the biggest rental car agent in Germany, as well as one of the leading mobility service providers in Europe, has reported that this financial year has gotten off to a good start. The first quarter of the year is usually weaker, but earnings before tax (EBT) for the company has improved to €8 million, a €42.6 million increase.

Revenue was also encouraging in light of the continued uncertainty of the economy. It matched the high level of the same quarter last year in Vehicle Rental. The Leasing Business Unit even had record growth in revenue of nearly 5%.

Sixt AG Managing Board chairman Erich Sixt said that they are pleased with the company’s start in 2010. They have achieved a very encouraging improvement in their results, he continued, and they have already generated over half of their entire 2009 profit, with their 3 month EBT of €8 million.

Mr. Sixt attributed their strong performance to many factors – they systematically avoid revenue that isn’t sufficiently profitable, they pursue a cautious fleet policy and they have their costs under control. He added that these will remain their guiding principles during the year.

In more detail, Sixt’s total consolidated revenue for the first quarter was down 2.8% to €366 million compared to last year. Consolidated earnings before taxes and net finance costs was €19.5 million. Profit for the quarter after taxes was €6.4 million.

The Managing Board is optimistic about this financial year even though economic conditions are still uncertain. Sixt will continue to pursue their goal of increasing their operating business’s profitability, as well as avoid revenue that’s not sufficiently profitable. If they do these things, revenue for the year is projected to be only slightly less than last year – that is if there are no negative events that greatly impact the group.