Hertz -13.7% on full-year warning, other disclosures; Avis -2.6%


Hertz (NYSE:HTZ) now expects 2014 results to be "well below the low end" of prior guidance due to "operational challenges in the rental car and equipment segments," and its ongoing accounting review.

The "challenges" include heavy vehicle recall activity, "significantly higher-than-expected" U.S. opex, "issues and delays" in the installation of ERP and counter systems, and "continued soft demand" in the equipment rental market.

Hertz's audit committee has "directed the Company to conduct a review of the financial records for fiscal years 2011, 2012 and 2013 and their impact, if any, on 2014." Hertz notes additional errors might be found.

U.S. rental car revenue rose 4% Y/Y in Q2; rental car revenue/day rose "slightly." International rental car revenue rose 7%, and equipment rental revenue 1%.

Lead independent director George W. Tamke is resigning, and will be replaced by director Linda Fayne Levinson. Rent A Car Americas chief Scott Sider is retiring. Sider's responsibilities will be assumed by other execs.

Avis (NASDAQ:CAR) is following Hertz lower.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs