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Hertz releases second-quarter financial reports after filing for bankruptcy

Hertz releases second-quarter financial reports after filing for bankruptcy
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Hertz has been in business for over 100 years.

In May, the car-rental company filed for reorganization under Chapter 11 in bankruptcy court in Delaware.

On Monday, Hertz announced in a press release that revenues were down 70% as it reported its second-quarter financial results.

"In the second quarter, like so many companies whose revenues have sharply declined due to the pandemic's significant impact on global travel, we had to make difficult but necessary decisions to strengthen and position the company for growth for many years to come," said Paul Stone, President and Chief Executive Officer of Hertz Global in the news release. "The toughest decisions have been those that impact the livelihood of our dedicated workforce and our voluntarily reorganizing under Chapter 11 in North America. We are moving through our reorganization process and remain focused on emerging an even stronger global rental car leader better positioned to serve our customers around the world."

The parent company, Hertz Global Holdings, recorded revenue of $832 million, but with a net loss of $847 million.

And with air travel impacted by COVID-19, the company said airport car rentals were down 82%.

In the news release, the company said they saw a strong rebound in its used-car market in May and June, and they were able to "sell cars aggressively as we right-size the fleet to align with market realities."

"We continue to make disciplined adjustments to our cost structure based on revenue fluctuations and expect to generate about $2.5 billion in annualized savings," said Stone in the release. "Our priority is fleet management. The continued strong used-car market allows us to continue to sell cars aggressively as we right-size the fleet to align with market realities. Across the business, our team is laser-focused on capturing revenue, driving efficiency, and advancing critical technology. In the U.S., we continue to capitalize on rental opportunities off-airport, while ensuring customer service levels remain best-in-class. Internationally, our fleet is trending toward demand levels. And our Donlen leasing business remains stable. Finally, continuing to keep our teams and our customers safe in this unpredictable environment is of utmost importance to everyone at Hertz."