Hertz posts 31% jump in income

PARK RIDGE, NEW JERSEY: Hertz Global Holdings Inc’s second-quarter net income climbed 31% and revenue jumped 22% as several of the car rental company’s segments achieved doubledigit revenue growth.

The results were largely in line with Wall Street expectations, and Hertz reaffirmed its forecast for the year.

Chairman and CEO Mark Frissora said in a statement on Monday that there was double-digit revenue growth in the US off-airport car rental business, the leisure car rental segment, its equipment rental business and Donlen Corp, a provider of fleet leasing and management services. Hertz acquired Donlen in 2011.

Hertz earned $121.4 million, or 27 cents per share, for the three months ended June 30. A year earlier it earned $92.9 million, or 21 cents per share.

Removing certain one-time items, earnings were 45 cents per share. Adjusted earnings were 35 cents per share in the prior-year period.

This met the expectations of analysts polled by FactSet.

Revenue for the company rose to $2.71 billion from $2.23 billion as worldwide car rental revenue climbed 23% to $2.33 billion. Wall Street expected $2.7 billion in revenue.

Hertz said that transactions days for car rentals climbed 22%, mostly because of the buyout of fellow car rental company

People walk by a Hertz office in San Francisco, California on Monday. Dollar Thrifty Automotive Group.

Hertz acquired Tulsa-based Dollar Thrifty for $2.3 billion in November under an interim agreement and consent order. As part of that deal, Hertz sold off its former Advantage car rental business, select airport operations and some other assets. Earlier this month the Federal Trade Commission issued a final consent order for the transaction.

Global equipment rental revenue increased 15% to $384.4 million on higher prices and stronger equipment rental volumes.

Hertz maintained its forecast for 2013 adjusted earnings of $1.82 to $1.92 per share on revenue of $10.85 billion to $10.95 billion. Analysts expect full-year earnings of $1.90 per share on revenue of $10.9 billion.