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August 5, 2010
Avis Budget Group reported second-quarter net income of $29 million, reversing the $2 million loss from a year earlier. U.S domestic
car rental revenue declined 5 percent on 6 percent fewer rental days and marginally lower average daily rates. Non-U.S.
car rental revenue jumped 16 percent on a 13 percent increase in average daily rate. CEO Ron Nelson told analyst that commercial pricing during the quarter was "flat" versus last year. "Large $1 million-plus accounts just aren't getting very significant price increases, if any," he said.
August 4, 2010
Hertz is observing "accelerated" commercial business and anticipates that average contracted rates by year-end would stop declining, according to CEO Mark Frissora. He detailed how commercial pricing in April fell 3.5 percent year over year and improved each month through July, when it was down 0.5 percent. "We have competitors that have been very aggressive in trying to get corporate business and we have not given up any market share," Frissora explained during a Wednesday conference call with analysts. "Whether it be a General Electric or an IBM, big accounts that have airport market share are ripe for competitors to go after if they are trying to gain share. We have about 45 percent-plus share among the
Fortune 500 companies and that is share that we have had to defend. Pricing should start to improve, certainly going into next year, but that is very difficult to predict when you are negotiating 200 contracts every month." He noted that Hertz's "top 25 accounts" are producing volumes that are up "20 to 25 percent" versus last year. According to company information, total on-airport commercial transaction days increased 14.3 percent during the second quarter.
Hertz Global Holdings reported second-quarter adjusted net income of $58.5 million, up from $49.6 million a year earlier. The company's largest business, U.S.
car rental, achieved "record second quarter" performance.
July 29, 2010
Avis Budget Group proposed to purchase Dollar Thrifty Automotive Group for "a higher price" than an offer floated in April by Hertz Global Holdings. According to a letter from Avis Budget CEO Ronald Nelson to Dollar Thrifty's board of directors, the higher price combined with other more favorable terms make the Avis proposal "a superior one." According to a Dollar Thrifty statement, the company will review the deal. Dollar Thrifty already scheduled a Sept. 16 shareholder meeting to vote on
the Hertz proposal.
May 27, 2010
Hertz Global Holdings expects to complete its acquisition of Dollar Thrifty Automotive Group "in the near future," but DTAG noted "ongoing" due diligence by Avis Budget Group, which intends to make "a substantially better offer." The companies made these latest comments on potential
car rental industry consolidation in May 26 filings to the U.S. Securities and Exchange Commission.
April 26, 2010
Hertz Global Holdings posted a March quarter net loss of $147 million, down from the $160 million net loss a year earlier. The adjusted pre-tax loss was $69 million versus $117 million in the March quarter of 2009. U.S.
car rental revenue increased 10 percent year over year, driven in part by higher pricing, ancillary revenues and "business travel."
April 26, 2010
Hertz Global Holdings agreed to acquire Dollar Thrifty Automotive Group in a mixed cash and stock deal subject to closing conditions and regulatory approvals. "Dollar Thrifty is a $1.6 billion business with more than 1,550 corporate and franchise rental locations worldwide which, when combined with our global network, will serve rental customers on six continents from approximately 9,800 locations," according to a statement by Hertz CEO Mark Frissora. "Together we will be able to compete even more effectively and efficiently against other multi-brand
car rental companies."
March 26, 2010
About 8 percent of the North American rental car fleet was affected by Toyota's recalls since late January, according to Advito. Temporary fleet shortages occurred when 104,000 vehicles were pulled off rental lots operated by "Hertz, Enterprise, Avis, Budget, National and Alamo in the month following the massive recall," the BCD Travel consultancy wrote in its updated 2010 industry forecast. The temporary disappearance of Toyota's Prius hybrid "may have had a particular impact on clients seeking to integrate a green element in their
rental car program."
December 17, 2009
The
third-quarter average car rental rate paid by corporate travelers in North America was $74, according to American Express Business Travel. That is up from $71 during the previous quarter and flat compared with full-year 2008.
November 3, 2009
Avis Budget Group reported a third-quarter net profit of $69 million, excluding one-time items, compared with $57 million a year earlier. Domestic
car rental revenue declined 16 percent year over year, as a 23 percent drop in rental days offset a 9 percent increase in overall pricing. CEO Ron Nelson said commercial pricing during the quarter increased "about 5 percent, with most of the strength in the under $1 million accounts."
November 2, 2009
The joining of Avis Budget Group's and Carey's sales forces "has nothing whatsoever to do with rate," according to an Avis Budget spokesman. He was disputing a comment by Dave Kilduff, managing director of the CWT Solutions Group ground transportation practice, who in response said, "Theoretically, agreements like this generally provide price benefits in addition to other customer advantages. Avis Budget Group and Carey would know best what the customer benefits of their agreement are, and if price is not a benefit, it remains to be seen how corporations will respond to this offering." The
car rental firm and chauffeured transportation provider recently began integrating sales forces about two years after Avis Budget paid about $60 million for 45 percent of Carey.
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