Giant car rental group and new vehicle buyer Dollar Thrifty Automotive expects a sharply improved bottom line in the fourth quarter as the car rental industry continues to rebounds from depths earlier this year that raised bankruptcy fears for some in the industry.
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The sector was pummeled earlier this year by the credit crunch, reduced demand amid a drop in travel during the recession and falling used car prices. But demand is coming back some and used cars have seen values rise, Dow Jones Newswires reported.
Dollar Thrifty sees adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) for both the quarter and year, compared with losses in the prior year periods. The company still expects 2009 rental revenue will be off by 8% to 10%.
“Our strategy for 2009 involved a significant number of actions to return the company to profitability while navigating” the recession, president and chief executive Scott Thompson told the news agency. “We are very pleased with how the company has performed during 2009 and the way the year is ending.”
The company cut costs earlier this year to offset weak demand and has been reducing its debt, the report noted.
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