DOW JONES NEWSWIRES
Avis Budget Group Inc.'s (CAR) fourth-quarter loss narrowed on
better-than-expected revenue growth as the rental-car giant
benefited from a rebound in commercial and leisure travel.
Higher prices and volume combined with lower costs have
bolstered the company's results in recent quarters, after Avis
spent a stretch in the red when the recession depressed demand for
travel services.
For the latest quarter, Avis reported a loss of $24 million, or
23 cents a share, narrowing from a year-earlier loss of $49
million, or 47 cents a share. Excluding acquisition-related
expenses and other impacts, the loss would have been 6 cents a
share from a loss of 25 cents the prior year.
Revenue rose 5.7% to $1.23 million.
Analysts expected a loss of 6 cents a share on revenue of $1.19
billion.
Rental days for cars rose 6.5%, while time-and-mileage revenue
per day fell 2.1%.
Avis said it expects efforts to cut costs and enhance
productivity will provide $45 million to $55 million of incremental
savings this year compared to 2010, bringing the annual savings
from the company's actions since 2008 to more than $550
million.
Last year, Avis beat Hertz Global Holdings Inc. (HTZ) in a
months-long standoff to win an takeover agreement for Dollar
Thrifty Automotive Group Inc. (DTG). After Dollar Thrifty
shareholders voted down the Hertz deal, Avis and Dollar Thrifty
jointly presented their proposed takeover to the Federal Trade
Commission, though they have said the FTC's position is still
unclear.
Avis and Dollar Thrifty are the No. 3 and No. 4 competitors in
the U.S. car-rental market, respectively, with privately held
Enterprise Holdings the market leader and Hertz at No. 2.
Avis shares closed at $15.66, or up 12 cents, on Wednesday and
were inactive in after-hours trading.
-By John Kell and David J. Reynolds, Dow Jones Newswires;
212-416-2480; john.kell@dowjones.com