Dollar Thrifty 2Q profit up, helped by cost cuts

TULSA, Okla. (AP) ? Dollar Thrifty Automotive Group Inc.'s second-quarter net income rose 16 percent as lower costs offset revenue that was little changed from a year ago. The car-rental company also raised its earnings expectations for the year.

Dollar Thrifty said Wednesday that it earned $49.4 million, or $1.69 per share, compared with $42.5 million, or $1.36 per share, a year earlier.

Revenue rose slightly to $395.4 million from $395.1 million in the second quarter of 2011.

Analysts expected a profit of $1.24 per share on revenue of $408.4 million.

The company said that a growth in rental days, better utilization of its vehicles and a strong market for used vehicle sales all helped the quarter's results. Those factors helped offset weakness in rental prices and the broader impact of the "disappointing current economic environment."

It expects continued growth in rental days ? either by more customers renting or existing customers extending their vacations ? to offset weak prices for the rest of the year. It expects modest revenue growth, with net income of between $5.25 and $5.70 per share for 2012. That's up from a previously announced range of $5 to $5.60 per share.

Analysts currently forecast a profit of $5.14 per share.

Also Wednesday, the company said that no other company ? including Hertz Global Holdings Inc. ? has made an offer to buy the company, despite what it calls "persistent" media reports.

Dollar Thrifty had been the target of competing takeover attempts by Avis Budget Group Inc. and Hertz Global Holdings Inc. a year ago. It avoided a takeover in part by adopting a shareholder rights plan, known as a "poison pill," in May 2011.

"After three years of merger-related activity and speculation, it believes it is time for a compelling offer to be made or for this process to come to a close so that the company can move forward under its stand-alone plan without the constant distraction of merger speculation," it said.

Source: http://news.yahoo.com/dollar-thrifty-2q-profit-helped-cost-cuts-121420737--finance.html

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