Hertz Equipment Rental Co.’s (HERC’s) total worldwide revenues were $375 million for the second quarter of 2015, down 2% compared with the second quarter of 2014. Excluding the impact of foreign currency, revenue increased $3 million, or 1%.
Parent Hertz Global says revenue was negatively affected by weakening in upstream oil and gas markets during the quarter. But the company’s second-quarter financial report claims worldwide volume growth driven by new accounts derived from small local contractors and specialty segments.
Equipment-rental pricing for the second quarter was up 1% year-over-year.
Worldwide Equipment Rental adjusted pre-tax income for the second quarter of 2015 was $42 million, a 37% decrease ($25 million) from $67 million in the second quarter of 2014. Corporate EBITDA for the Worldwide Equipment Rental segment for the second quarter of 2015 was down 11% over 12 months to $147 million.
Hertz Global remains committed to selling its equipment rental business, planning to use net cash generated in connection with the HERC separation to pay down Hertz Global debt and support additional share repurchases. The company has put new leadership in place at HERC that is focused on delivering improving core-business performance and enabling profitable growth.
Hertz Global Holdings reported second-quarter 2015 net income fell 68% from the second quarter of 2014 to $23 million. Total Q2 revenues were off 4% to $2.7 billion.
In the first half of the year Hertz Global realized approximately $80 million in cost savings, and the company expects to cut costs another $120 million before the end of 2015.
The company maintains its financial outlook for 2015, expecting EBITDA in the $1.45 to $1.55 billion range ($575 to $625 million should come from HERC).
Read Hertz Global Holdings Inc.'s complete second-quarter 2015 financial report
