Hertz president and CEO Kathryn Marinello views 2017 as a transition
year in which the company can begin to win back corporate share with improved
fleet and service.
In her first earnings call since taking
over in January, Marinello, a former GE executive, noted it was "clear
the brand carries equity" after initial meetings with corporate customers.
Still, she plans to invest in fleet, websites, apps and employee training. CFO
Tom Kennedy noted that corporate accounts showed continued softness in the
fourth quarter but acknowledged that those initiatives would take time to show
gains. Marinello said, "It's clear we have a lot of work in front of us,
but it's all within our control."
One initiative will be expansion of Hertz's Ultimate Choice
platform, in which customers self-select their preferred vehicle onsite without
waiting in line, she said. The offering is available at 10 airports, and that
will expand to 30 by the middle of this year and to all major airports where Hertz
operates by year-end, Marinello said. The program also helps Hertz inform its
fleet choices, providing direct data on the cars' popularity among renters, she
added.
In the fourth quarter, Hertz Global Holdings' total U.S.
revenue was flat year over year, at $1.4 billion, as volume rose 1 percent and
pricing decreased 1 percent. Outside the U.S., revenue declined 6 percent to
$441 million, as volume increased 1 percent and pricing dropped 5 percent.
Hertz
reported a net loss of $491 million for the year, compared with net income of
$273 million in 2015. In the fourth quarter alone, the company reported a loss
of $440 million, which included $309 million in impairment charges.