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Car-rental company Hertz Global swung to a wider-than-expected loss during the past quarter, as its new chief executive pledged to tackle the “flee and service” issues that dogged its performance over 2016.
For the three-month period ending December 31, the company reported a net loss of $438m, or $5.28 a share, compared with the $46.7m loss, or $1.26 a share, that analysts surveyed by Bloomberg had expected. Revenue for the quarter, however, came in at the $2bn that Wall Street had targetted.
Chief executive Kathryn Marinello said in a statement that the company’s 2016 performance was the result of “issues around fleet and service, which we are addressing.”
She added that the company was focused on upgrading “the quality and mix of the fleet” as well as other programmes in order to “enable customers to get the cars they want, when they want them.”
Ms Marinello said she is eyeing investments in the company’s “fleet, service, marketing and technology” to kick-start top-line growth in the coming fiscal year.
Ms Marinello is attempting to steer Hertz back into the black after taking over as the company’s chief executive in December, Hertz’s second new CEO in as many years.
Over the past 12 months, Hertz shares are down about 41 per cent. But on Monday evening, its stock bounced up 2 per cent in after-hours trading.