Second quarter profits for rental giant Hertz fell by 92% on the back of poor car and equipment hire, although the figure was still higher than the company’s own forecast.

Figures for the quarter revealed that profit fell from $51 to $4 million, with share prices rising by a mere 1% in contrast to the 16% for the same period last year.

For the second quarter, Hertz reported a profit of $3.9 million, or 1 cent a share, down from $51.2 million, or 16 cents a share, a year earlier. Excluding restructuring and related charges, earnings dropped to 12 cents a share from 30 cents. Total revenue dropped 23% to $1.75 billion.

The year to date had seen Hertz make cuts to its jobs and locations, although the late summer surge in hire car demand saw the company scramble to purchase new vehicles to meet the demand. The recession had also allowed Hertz to purchase the bankrupted assets of rival rental group Advantage, thereby affording a larger market presence.

Global hire car revenue fell by 19% over the past year.

Hertz has advised that second half year results would be far more moderate, adding that the propping up of motoring giants Chrysler and General Motors has alleviated some of the burden.

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