Boston, MA 08/21/2114 (wallstreetpr) – Renowned car rental service company, Hertz Global Holdings, Inc. (NYSE:HTZ) commented lately that on the basis of the current market operations and value propositions, it revealed that the upcoming quarters shall be under the net guidance due to abject instances of business challenges. Based on the metrics and parameters of concern, the company sought for withdrawing the full fiscal year forecast.
Challenges In Vogue
The operational challenges that the company is hurled upon include innumerable call recalls, high and increasing operational expenses and weak demands for the equipment rental businesses. Analysts at Thomson Reuters projected that the net expected profit shall stagger at $1.82 for each share, summing up to a net profit of $11.48 billions.
The Bigger Picture
The recall resulted in very limited scope of availability of fleet, which added up in hurting the US car rentals. Driven by invigoriating demands for rental car business across the world – net international rental car revenues shot up by 7%, solely by the virtue of exquisite rise in the demands across the European nations and New Zealand. Worldwide equipment business, on the other hand, grew meekly by 1%. However, higher expenses put Hertz Global Holdings, Inc. (NYSE:HTZ) down over the past few quarters.
The billionaire investor and a deciding factor in quite a few exquisite measures adopted by ailing companies lately into joining other better-poised and well performing companies, Carl Icahn conjectured that he bags a 8.5% stake in Hertz Global Holdings, Inc. (NYSE:HTZ), and hence opts to plan in pressuring the car rental company’s think tank into taking prudent steps in tackling accounting issues and pragmatic operational failures.
The Poison Pill
Icahn has spent a whopping $470.5 million and possesses a voluminous 38.8 million shares under his belt. He wishes to seek a certain privileged board seat! However, last year, HTZ had bitten the poison pill that prevents any individual stakeholder from exercising full control of company’s operations!
Hertz Global Holdings, Inc. (NYSE:HTZ) mentioned on Wednesday that it is inclined to have dialogues with its sundry shareholders in seeking for measures to implement new procedures and value additions to the finance and accounting teams. However, Icahn is not the sole stakeholder who has expressed concern about the HTZ management.