13.08.2015

Hertz struggles as separation gathers pace

Hertz Equipment has published its first half results showing further declines in revenues and profits

Total revenue for the six months fell two percent to $730 million, due to a small drop in volume and more importantly the negative impact of exchange rates. Pre-tax profits slumped from $86 million last year to $32 million this year, due to higher depreciation, higher sales and admin costs and higher interest charges. Utilisation remained at the same levels as last year at 62 percent, while capital expenditure improved slightly to $259 million, although disposals resulted in a shrinkage of the fleet.

In second quarter revenues also slipped two percent due to currency exchange factors, while pre-tax profits dropped 37 percent to $42 million. Utilisation remained the same as last year at 63 percent.

The company has also confirmed that its plans to separate the car rental and equipment rental divisions are on plan and the funds raised from the sell off/float of the equipment business will be used to pay down debt.