CFO Departure Not Last of Hertz Global Holdings, Inc (NYSE:HTZ)’s Problems
The Park Ridge, N.J-based car rental company Hertz Global Holdings, Inc (NYSE:HTZ)’s Elyse Douglas will be stepping down from the Chief Financial Officer post on 1 October. The company has embarked on an internal as well as an external search for a permanent candidate for that position. In the interim period, David Rosenberg will be filling-in the CFO post. Ms Douglas had been with the company since 2007 and moved into the CFO post in 2011.
Other affecting factors
The fact that one of its top executive posts is going through a shake-up is not the only factor that is shaking the Hertz Global Holdings, Inc (NYSE:HTZ) boat. The company has not had a noteworthy year and has lowered its 2013 full-year guidance. Business traveler demand has been dismal at the company’s main United States airport car rental division.
On Thursday, Mark Frissora, the company’s Chief Executive Officer said at the MKM Entertainment and Leisure Conference held in New York, that weak consumer confidence, QE concerns, a drop in airline-capacity and hotel bookings dips have put a great deal of pressure on the company’s U.S airport business. Incidentally, this is Hertz Global Holdings, Inc (NYSE:HTZ)’s largest division.
The decline continues
On the whole, over the last few years post the recession, car rental companies had posted healthy sales figures since there had been an increase in leisure and business customer travel. However, Hertz Global Holdings, Inc (NYSE:HTZ) had indicated that there was a drop in some travel trends in the commercial segment due to the QE fears.
In the meantime, almost all the airlines in the united Sates have cut capacity in order to bring some semblance of health into their pricing power. Frissora said that most of the volume deterioration that is being currently experienced has come, not from leisure travelers but from commercial ones.
In Thursday’s trading, Hertz Global Holdings, Inc (NYSE:HTZ) dropped by 16.10%. The opening price of the company’s shares was $22.99 which climbed to an intraday high of $23.00 and dropped to a close of $21.63.