Hertz Global Holdings last week forecast worldwide revenues in the range of $1.70 to $1.75 billion, corporate EBITDA in the range of $260 million to $270 million, adjusted pre-tax income in the range of $65 to $70 million and adjusted diluted earnings per share in the range of $0.09 to $0.10 for the second quarter 2009.
For the full-year 2009, the company forecast worldwide revenues in the range of $6.7 to $7.0 billion, corporate EBITDA in the range of $900 million to $935 million, adjusted pre-tax income in the range of $100 to $120 million and adjusted diluted earnings per share in the range of $0.12 to $0.15.
“We are able to resume earnings guidance for the current quarter and full year for several reasons,” said Mark Frissora, Hertz chairman and CEO. “Our car rental demand in the U.S. and Europe has stabilized and we are experiencing better-than-anticipated summer peak reservation build in both markets. We are adding fleet as a result. Additionally, we anticipate no significant long-term financial impact from the GM and Chrysler bankruptcies, and we are increasing our estimate of incremental, annualized cost savings in 2009 by $70 million, to $570 million. These positive developments are offset partially by further, modest weakening in equipment rental demand and pricing, although we believe HERC will continue to generate strong corporate EBITDA throughout the year.”
The company said its worldwide equipment rental business is expected to generate more than $100 million in second-quarter corporate EBITDA. It continues to expect the corporate EBITDA margin of the equipment rental business to exceed 40 percent for the second quarter and full-year 2009.
Park Ridge, N.J.-based HERC is No. 4 on the RER 100.
