Hertz Global Holdings, the largest hire car organisation on the planet, has revealed that its fourth quarter loss has dropped dramatically from the dark times of a year ago. This time last year, the car rental industry was embroiled in a bitter fight to stay afloat as the effects of the global recession weighed heavily on operating costs.
The latest results were above most analyst projections for the period, as were the average earnings per share.
Hertz, which is based in New Jersey at Park Ridge, announced that the fourth quarter loss was just $30.9 million, an equivalent of $0.08 per share. The previous fourth quarter period saw the group report a net loss of some $1.22 billion, or $3.77 per each share. Impairment charges for that period were also well over one billion as reduced fleet sizes rid the organisation of people and monetary assets. This time around it was just over $22 million. Fourth quarter total revenue dropped a slight 3 percent from $1.79 billion to $1.74 billion.
The CEO and Chairman of the Hertz group, Mark Frissora, said that the strengthening performance shown in the fourth quarter indicated that the slow improvement across th board was continuing. The US market, the main revenue stream, was also showing clear signs of being over the worst of the recession which gives great hope to the global business.
Worldwide car rental activity increased by 3.4 percent over the past year-on-year quarterly period, some good news for the company which reported a $126 million net loss for the calendar year.