Hertz Global Holdings recorded record first-quarter 2008 worldwide revenues of $2.04 billion, a 6.1-percent increase compared with the first quarter 2007. Revenues from international operations constituted 33.3 percent of worldwide revenues.
Revenues from worldwide equipment rental were a record $411 million, a 5.4-percent increase over the year-ago first quarter. Strong year-over-year revenue growth in North American non-construction equipment rental markets, especially the industrial market, was partially offset by a decline in the U.S. non-residential construction business. The average acquisition cost of rental equipment operated during the first quarter of 2008 increased by 12.6 percent year over year, compared with a 12.1-percent increase in the first quarter of 2007 compared with Q106.
In a discussion with analysts, Frissora said, in regard to the equipment rental business, â€śWe are improving our fleet portfolio management to drive fleet-related savings. While we remain committed to growing our revenue, we believe we can better manage fleet growth against anticipated peak demand levels. This will allow us to be more selective about the business we take during those peak periods and should be beneficial for pricing as well as profitability.
â€śAnother critical aspect of fleet management being implemented at HERC will be optimizing the fleet holding period by measuring at various points in life cycle the profit contribution of a piece of equipment compared to its residual value. To sum up, our objective is to lower our fleet cost through portfolio and life-cycle management, implementing more strategic acquisition and disposal practices in channels, optimizing the holding period and rationalizing product categories to streamline fleet processes.â€ť
Based in Park Ridge, N.J., Hertz Equipment Rental Corp. is No 4 on the RER 100.