Hertz Global Holdings' revenue declined 2 percent year over
year to $2.3 billion during the second quarter amid "softness" in
corporate rental volume.
During an earnings call, CFO Tom Kennedy said "an
unfavorable shift in customer mix," including tepid corporate demand and
more off-airport rentals, contributed. U.S. revenue declined 2 percent to $1.6
billion, and international revenue declined 3 percent to $540 million.
U.S. transaction days increased 6 percent, but revenue per
day, an indication of pricing, declined 8 percent. President and CEO John Tague
said U.S. pricing near the end of the quarter was a "sharp improvement
versus our April performance, and we've seen continuing improvement in
July." During the second quarter, Hertz renewed 96 percent of the corporate
agreements that were up for renewal, and two-thirds of those were renewed at
flat or higher pricing, he added.
For international rentals, transaction days were flat year
over year, and revenue per day declined 2 percent.
Hertz reported a net loss of $43 million for the quarter,
compared with a $36 million profit in the second quarter of 2015. The company
was hit with $20 million in unexpected charges in its international business,
largely from insurance-related charges. Hertz has been pushing down its costs,
in part through improved fleet management, and overall costs per transaction
day declined 6 percent in the quarter, according to Tague.
"We expect to see better outcomes in the
second half of 2016 and accelerated progress in 2017," he said.