20.07.2015

Hertz files results

Hertz has finally filed its 2014 results and restated the results for 2011, 2012 and 2013, equipment revenues increase two percent.

The impact of the restatement knocked $73 million from pre-tax profits in 2011, $90 million in 2012 and $72 million in 2013.

Total revenues for the Equipment rental business in 2014 was $1.571 billion, just two percent higher than the restated figures for 2013. Pre-tax profits however plummeted 29 percent to $170 million, due to higher maintenance costs as the company spent more heavily on upgrading and refreshing its fleet. The company also closed some of its equipment sales operations which had an impact.Physical utilisation also slipped one percent from 65 percent in 2013 to 64 percent last year.

In the first quarter of this year revenues were $355 million, one percent below that achieved in the first quarter of 2014 – due entirely to lower sales of equipment. Rental related revenues improved three percent to $336 million. Pre-tax profits fell 31 percent to $11 million. Utilisation picked up slightly from 60 to 61 percent.

The company says that it is making progress towards the separation of the business from the car rental company, so expect to see this all concluded by the end of the year.

Vertikal Comment

The information above has been gleaned from the company’s filings, it is currently working through the production of separate accounts for the equipment rental business and will publish its half year results in August, we will provide more information at that point, when we expect the company to provide more specific comments.