UPDATE 1-Dollar Thrifty Q4 loss wider than expected

Wed Feb 18, 2009 12:58pm GMT
 
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* Q4 adj loss $1.82/shr wider than est of $1.17/shr

* Q4 rev falls 9 pct to $355.1 mln

* Sees 2009 vehicle rental rev down 6-12 pct

Feb 18 (Reuters) - Car-rental company Dollar Thrifty Automotive Group Inc (DTG.N) posted a wider-than-expected quarterly loss as lower consumer demand and defleeting pulled down revenue.

For the fourth quarter, the company posted a net loss of $72.2 million, compared with a loss of $30.6 million a year earlier. Excluding items, the company lost $39.1 million in the latest fourth quarter.

The Tulsa, Oklahoma-based company also said it expects vehicle rental revenues to be down 6 to 12 percent for 2009.

Rental revenue for the latest fourth quarter fell about 10 percent to $336.7 million, pulled down by a 7 percent decrease in revenue per day and a 3.2 percent deterioration in rental days, the company said.

Rental car companies, like Dollar Thrifty, Hertz Global Holdings Inc (HTZ.N) and Avis Budget Group Inc (CAR.N), have been hurt by the slowing economy as customers cut their discretionary spending on travel, translating to lower rentals.

"The lack of liquidity in the retail credit market depressed demand levels at used vehicle auctions, resulting in further deterioration of vehicle residual values, driving our fleet depreciation costs above expectations and historical levels," Chief Executive Scott Thompson said in a statement.  Continued...

 

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