10.08.2008

Hertz Equipment up 3.5%

Hertz Equipment Rental, the general rental division of the Hertz car rental company, which operates in both North America and Europe, has reported first half revenues of $854 million, an increase of 3.5 percent on the same period last year.

Adjusted pre-tax profits for the equipment division fell by 10 percent to $145 million. The company said that it achieved solid growth outside of the non-residential construction business in the U.S. as well as strong growth in Western Canada where economic activity related to the oil industry remains strong.

The company also annouinced that it “has initiated the closure of 22 branch operations across the U.S. to gain further operating efficiencies. The initiative resulted in severance costs for approximately 180 employees whose positions were eliminated, asset impairment charges for surplus equipment identified for disposal, recognition of future facility lease obligations and the impairment of related leasehold improvements.

Additionally, in the second quarter of 2008, we implemented other cost containment and efficiency initiatives resulting in approximately 220 employee reductions.”