Hertz Reports 1Q Results

By Staff Writer May 13, 2020

Hertz Global Holdings, Inc. reported results for its first quarter 2020, showing financial results significantly impacted by COVID-19 pandemic.

The results show consolidated revenue of $1.9 billion and U.S. RAC revenue of $1.4 billion. Hertz Global showed a net loss of $356 million and Adjusted Corporate EBITDA of negative $243 million. Results also show approximately $1.0 billion of unrestricted cash and cash equivalents at March 31, 2020.

“We started the year with positive momentum, extending the strong growth trajectory of the past three years, reflecting consistent increases in both price and volume, productivity improvements and best-in-class fleet management,” said CEO and President, Kathryn V. Marinello. “Yet in just two months, the outbreak of the coronavirus created a major business disruption as global travel demand dropped to almost zero and the U.S. used-car market effectively shut down. We immediately shifted our business priorities to focus on employee and customer safety, expense mitigation and preserving liquidity.”

While ensuring the safety of its people, the company aggressively managed costs and liquidity by right-sizing its staffing and operations to reflect the current market realities, significantly reducing capital spending, canceling new fleet orders and disposing of excess fleet through multiple disposition channels before the shutdown of the used-car market. Company leaders believe these actions will result in approximately $2.5 billion in annualized cost savings.

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Last modified on Wednesday, 13 May 2020 14:24

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