Revenues down but Hertz says volumes may be stabilising

Hertz Equipment rental Corp (HERC) reported a 32% fall in revenues to US$279.5 million for the first three months of 2009 (a 27.5% fall in constant currency). Adjusted pre-tax profit for the first quarter of 2009 was $0.7 million, compared to $59.3 million in the same quarter in 2008.

HERC said the fall in profit was the result of lower volumes and pricing, which had been partially offset by cost reductions. Corporate EBITDA for HERC was $112.9 million (down from $181.4 million in 2008).

The company said that business demand at both the US car rental and worldwide equipment rental businesses appeared to be stabilising, "indicating a possible bottoming out of volume declines." However, HERC said pricing pressure in the US equipment rental markets "has not yet dissipated."