Dollar Thrifty raises its 2010 outlook on strong second quarter expectations; shares rise

By AP
Wednesday, July 7, 2010

Dollar Thrifty shares rise on rosy 2010 outlook

TULSA, Okla. — Dollar Thrifty raised its 2010 outlook Wednesday with expectations of a strong second quarter for the car rental company.

The company now says it expects 2010 earnings before interest, taxes, depreciation and amortization of $200 million to $220 million. Previously, the forecast was for $170 million to $190 million.

Dollar Thrifty said that second quarter EBITDA earnings should be between $70 million and $75 million, up from $20.9 million during the same period last year.

The company agreed in April to a buyout offer from rival Hertz for $1.2 billion. Without transaction costs related to the Hertz deal, EBITDA earnings are expected to be between $75 million to $80 million.

The company lowered its full-year guidance for rental revenue. Vehicle rental revenue for the full year should rise from 1 percent to 2 percent over 2009. The previous forecast was for a 2 percent to 4 percent improvement.

Dollar Thrifty, however, said it fleet costs should be lower in 2011.

Shares of Dollar Thrifty Automotive Group Inc. rose $1.46, or 3.5 percent, to $42.52 in morning trading.

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