The  Dollar Thrifty Automotive Group has declared that its 2010 earnings are likely to be higher than previously estimated.

Fresh from a lengthy takeover battle that has involved larger rivals Hertz and Avis fighting for the acquisition of the smaller Dollar Thrifty, the group announced Tuesday that it expected a significant increase to be seen in full-year 2010 adjusted earnings.

The result would represent a remarkable turnaround for the Tulsa-based car rental organisation, which began the year facing mounting debts that forced it to look to its larger rivals for survival. In April, the company signed an agreement to be bought out by Hertz Global Holdings, a move which saw the Avis Budget Group launch a counteroffer which has caused months of negotiations and regulatory scrutiny.

However, since the takeover battle began, Dollar has seen business increase and share prices rise to result in corporate adjusted earnings prior to taxes, interest, depreciation and authorisation, likely to range from $240 million and $260 million for the calendar year. This estimate does not include costs that are related to the proposed $1.2 billion Hertz takeover, but does represents a $40 million increase on previous forecasts.

Solid operating performance, lower fleet costs and cost control efforts are the main factors behind the improved outlook, which will also see adjusted earnings for next year likely to range from $186 million to $198 million. Shares in Dollar Thrifty closed at $47.03 in aftermarket trading, an improvement of around 30 per cent from earlier in 2010.