Hertz Global Holdings Inc. raised car prices, picked on or after January 1. The stock had its biggest gain in a year, Avis shot stock too.
Investors are encouraged by the possibility to increase revenue, sending Hertz shares fell 8.2 percent on Tuesday after a $ 24.47, 21 percent this year to Monday. US stocks in early trading rose slightly from noon to $ 24.52 Wednesday.
Avis Budget Group's stock on Monday, the highest increase of 2.5 years increased by 9.9 percent, to $ 64.48. Avis shares fell 17 cents to $ 64.31 as of midday Wednesday.
Rental prices were up 19 Hertz, Dollar and Thrifty brands December 21, said the company is headquartered in Naples, Fla., Said in a statement.
"The cost teams are increasing, due to the decline of surplus value, therefore, has been in our car rental brand in the United States to implement price increases," CEO John · Tague said it hired last month to help restore confidence in the company by aging fleets and sloppy accounting problems.
The company is also trying to reduce beyond their current plan costs, reduce expenses billion a year, while increasing investment in order to update the rental fleet. Pre-employment melon, Hertz said the team exceeded expectations, destruction and depreciation and residual value decreased maintenance costs caused billions of dollars in earnings before about reducing interest, taxes, depreciation and amortization.
Tone at the top
Tague, 52, joined Hertz November 21 Marcos Friso pull succeed. Hertz, who in September said Frissora resigned for personal reasons, did not report financial results in 2014, and told investors not to rely on their financial statements for the last three years.
Hertz said last month that the impact of the Board Audit Committee, "looking tone at the top" and the management of accounting errors. Hertz said he was told in June that a survey by the US Securities and Exchange Commission in the United States. Car rental company has said it found that the internal control of at least one major flaw, had ineffective procedures, December 31.
Hertz has been going after the benefit of higher prices brought about by the consolidation of the sow in the car rental industry. Dollar Thrifty reduce the number of acquisitions in the United States the major car rental companies in three or four. Four, including closely held companies holding company, controlled US Car Hire 98%, said that in 2012, when a combination of the Federal Trade Commission review.
Path
Tague, former United Airlines president and chief operating officer, I believe that after he joined in 2003 in the bankruptcy reorganization, using tactics such as increased baggage fees, economy class seats, airline passengers' legs while sales revenue space.
Hertz's prices are based in part on when the resale value of their vehicles down after use to sell the lease, Tague said today.
"The competition has been reflected in the depreciation of their vehicles last year, the economy has done very well," Maryann Keller, an industry consultant and former director of Dollar Thrifty said. "It will be interesting to see if it sticks to the industry into the winter when the festival is weak, there is excess capacity."
Fleet Risk
Hertz fleet management change strategy in recent years has taken advantage of the car prices for businesses and Dollar Thrifty has been completed successfully. Prior to this, he bought most of their car automobile manufacturers to submit the older and certain price to buy back. Now buy a car mostly flat, and then sold at market prices.
Hertz can benefit when prices rise, but must skillfully manage, sell cars, or face possible loss significantly, Keller said. The company said last month that it was reducing its alleged risk to the vehicle for 85% of the 70% dependence.
Bloomberg estimates in the analysis of September, Hertz could face $ 200 million of amortization accounted for its aging fleet. In all 200 000 515 000 cars and SUV Hertz rental fleet has over 35,000 miles using American roads, a person familiar with the fleet estimate, who requested anonymity because he was not authorized to speak for the company name.
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