SOURCE: The Hertz Corporation

January 05, 2007 16:45 ET

Hertz Announces First Phase of Productivity and Efficiency Initiatives

Targeted Job Reductions Affect New Jersey Corporate Headquarters, Oklahoma City Service Center and U.S. Field Operations; Up to $15.8 Million of Projected Annualized Savings; Additional Initiatives to Improve Operational Efficiency Will Be Implemented and Announced During 2007

PARK RIDGE, NJ -- (MARKET WIRE) -- January 5, 2007 -- Hertz Global Holdings, Inc. ("Hertz") (NYSE: HTZ), the operator of the world's largest general use car rental brand, and one of the largest equipment rental businesses in North America, announced today the first in a series of initiatives to further improve Hertz's competitiveness and industry leadership.

The company said that targeted job reductions affecting approximately 200 employees are intended to help streamline decision making and improve service, in part by de-layering management in several departments. The job reductions are occurring at the company's corporate headquarters in Park Ridge, N.J., the U.S. service center in Oklahoma City, and in U.S. field operations, and are expected to result in annualized savings of up to $15.8 million. The company anticipates incurring an estimated $3.3 million - $3.8 million restructuring charge for severance and related costs that will be taken in the first quarter of 2007.

The company said that the job reductions are occurring in the context of initiatives intended to improve operational efficiency and reduce costs worldwide. The initiatives focus on reducing new car costs, improving process efficiencies at its car and equipment rental locations, centralizing purchasing and organizational restructuring.

"Hertz is generating solid top-line growth and profits, enabling us to take steps to reduce costs and improve efficiency from a position of strength," said Mark P. Frissora, Chairman and CEO of Hertz.

"Job reductions are a difficult decision, and we regret the impact on affected employees, but the management team recognizes that fleet cost inflation and competitive conditions require us to act now. Throughout 2007, Hertz will implement a series of operational initiatives that should result in even higher levels of efficiency, enabling the company to maintain its position as the premium brand and service leader in our markets," added Frissora.

ABOUT HERTZ

Hertz, the world's largest general use car rental brand, operates from approximately 7,600 locations in 145 countries worldwide. Hertz is the number one airport car rental brand in the United States and at 69 major airports in Europe as well as the only car rental company with corporate and licensee locations in Africa, Asia, Australia, Latin America and North America. Product and service initiatives such as Hertz #1 Club Gold, NeverLost customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through Hertz's Prestige, Fun and Green collections, set Hertz apart from the competition. Hertz also operates one of the largest equipment rental companies in the United States and Canada combined, with corporate locations in France and Spain.

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. Forward-looking statements include information concerning Hertz's anticipated implementation of productivity and efficiency initiatives, including targeted job reductions, and the anticipated savings and restructuring charges expected to be realized or incurred in connection therewith. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "estimate," "seek," "will," "may," "should" or similar expressions. These statements are based on certain assumptions that Hertz has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors that Hertz believes are appropriate in these circumstances. As you read this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Many factors could affect Hertz's actual results and its ability to implement its cost savings and efficiency initiatives successfully, and could cause Hertz's actual results to differ materially from those expressed in the forward-looking statements. Some important factors include: Hertz's operations; economic performance; financial condition; management forecasts; efficiencies, cost savings and opportunities to increase productivity and profitability; income and margins; liquidity; anticipated growth; economies of scale; the economy; future economic performance; Hertz's ability to maintain profitability during adverse economic cycles and unfavorable external events (including war, terrorist acts, natural disasters and epidemic disease); future acquisitions and dispositions; litigation; potential and contingent liabilities; management's plans; taxes; and refinancing of existing debt. In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this press release might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to Hertz or persons acting on Hertz's behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and Hertz undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Hertz cautions you therefore that you should not rely unduly on these forward-looking statements. You should understand the risks and uncertainties discussed in "Risk Factors" and elsewhere in Hertz's prospectus, dated November 15, 2006, relating to the initial public offering of its common stock, as filed with the United States Securities and Exchange Commission, or the "SEC," could affect Hertz's future results and the outcome of its implementation of its cost savings and efficiency initiatives, and could cause those results or other outcomes to differ materially from those expressed or implied in Hertz's forward-looking statements.

Contact Information

  • CONTACT:
    Richard Broome
    Hertz Global Holdings, Inc.
    201-307-2486
    Email Contact