Dollar Thrifty Automotive Group Inc.'s (DTG) fourth quarter
profit rose 9% on higher rental revenue as overhead and other costs
essentially held steady.
However, the results fell short of analysts' expectations.
The company has posted improved results of late after it cut
costs and lowered depreciation and lease charges last year. The
auto rental industry has also benefited from the economic recovery
as businesses and leisure travelers begin to spend again.
"Revenue for the quarter was in line with our expectations, as
overall transaction volumes continued to reflect an improving
travel market," President and Chief Executive Scott L. Thompson
said.
Rival Hertz Global Holdings Inc. (HTZ) spent months pursuing
Dollar Thrifty as a takeover target last year before Dollar Thrifty
shareholders finally rejected the $1.56 billion offer in September.
Competitor Avis Budget Group Inc. (CAR) answered with an offer
worth about $1.6 billion in cash and stock. Dollar Thrifty said the
Federal Trade Commission's antitrust stance on the merger is still
unclear.
Dollar Thrifty posted a fourth-quarter profit of $12.5 million,
or 41 cents a share, up from $11.5 million, or 42 cents a share, a
year earlier. Excluding derivatives gains, merger costs and other
items, per-share earnings were 27 cents, compared with 28 cents a
year earlier. There were 11% more shares outstanding in the fourth
quarter of 2010.
Revenue edged up 1.1% to $349.1 million.
Analysts polled by Thomson Reuters had most recently forecast a
per-share profit of 36 cents on $355 million in revenue.
Shares closed Wednesday at $52.57 and were inactive premarket.
The stock has surged from its all-time low of 60 cents in March
2009.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com
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