“(Reuters) – Hertz Global Holdings Inc reported a quarterly loss due to costs related to its acquisition of Dollar Thrifty, but adjusted profit beat analysts’ expectations and the car rental company forecast strong results for 2013 on higher pricing.
Hertz forecast adjusted earnings of $1.82 to $1.92 per share for 2013 on revenue of $10.85 billion to $10.95 billion.
Analysts on average expect earnings of $1.78 per share on revenue of $10.79 billion, according to Thomson Reuters I/B/E/S.
Hertz is off to a “fast start” for the year, Chief Executive Mark Frissora said in a statement.
Car rental revenue per transaction day at U.S. airports rose 6 percent for Hertz and 2.6 percent for Dollar Thrifty in January, Frissora said.
This compares with a 1.6 percent increase for Hertz in December and 4.6 percent for Dollar Thrifty.
The car rental industry, tied closely to airline traffic and hotel bookings, has benefited from recovering business and travel in the United States.
Pricing in the U.S. commercial business, which serves corporate customers at airports, has been under pressure in recent quarters as the major players try to attract more customers by offering lower prices.
To diversify away from airport rentals, Hertz fought a long battle with rival Avis Budget Group Incover Dollar Thrifty, which serves the leisure car rental market.
After more than two years of first making a public offer, Hertz acquired Dollar Thrifty for $2.6 billion in late 2012 after agreeing to give up 29 Dollar Thrifty airport locations and sell its low-cost Advantage brand….”
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