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February 21, 2010
PARSIPPANY, N.J.
Avis Budget Group Inc. reported a narrowed fourth-quarter loss of $49 million Wednesday as continued weak demand for rental cars sent its revenue down 8 percent.
The results were still better than Wall Street expected.
The loss for the October-through-December period amounted to 47 cents per share, improved from a loss of $121 million, or $1.20 per share, a year earlier.
The company said its loss was 25 cents per share not counting certain items, such as a $5 million charge for restructuring and a $32 million non-cash impairment charge. Analysts surveyed by Thomson Reuters had pegged the loss at 28 cents per share.
Revenue declined to $1.16 billion from $1.26 billion, including a 9 percent drop in car rental revenues.
Chief Executive Ronald Nelson said cost-cutting and a smaller fleet had helped improve results despite those decreases.
Shares in Avis rose 49 cents, or 3.8 percent, to $13.31 in trading before the results were announced. But in aftermarket dealings, they slumped $1.05, or 7.9 percent, to $12.26.