U.S. car rental revenue at Hertz Global Holdings declined 2
percent year over year during the third quarter to $1.7 billion as the company
reported weakness in its corporate car rental business.
Hertz's transaction days in the U.S. increased 1 percent,
and rate per day declined 3 percent to $44.10. Business volume rose 3 percent
thanks to double-digit percentage increases in insurance replacement rentals
and government business. That was offset by weak corporate contracted volume
stemming from a corporate car rental market that is showing "modest growth
at best" and from a struggle within Hertz to keep corporate market share. "We're
reaching out to our top accounts to solicit feedback on our performance and
opportunities to improve," Hertz CFO Tom Kennedy said of efforts to
recapture market share. "We are incorporating that insight into our
planning and investment, including through new products and services but also
better account management."
Hertz's international revenue declined 1 percent year over
year to $683 million. Transaction days increased 2 percent, and rate per day
declined 1 percent to $44.80.
The
company reported a pre-tax income of $124 million for the quarter, down from
$212 million in the third quarter of 2015.