(RTTNews) - Car and equipment rental provider Hertz Global Holdings, Inc. (HTZ: News ) reported Thursday a profit for the third quarter that soared from last year on lower expenses, due to the company's expense management initiatives, despite a 15.7% revenue drop. However, adjusted earnings per share was down two cents, but topped analysts' expectations by seven cents. The company also recently raised its earnings and revenue forecast for the full year 2009.

Commenting on the results, chairman and chief executive officer, Mark Frissora said, "Our strong earnings performance in the third quarter reflects sustained progress on expense management and incremental revenue-generating initiatives which are offsetting soft, but improving, business travel demand and stabilizing equipment rental volume."

The Park Ridge, New Jersey-based company posted net income of $64.5 million or $0.15 per share for the third quarter, higher than $17.7 million or $0.05 per share in the prior-year quarter.

Excluding non-recurring items, adjusted net income for the quarter was $124.5 million or $0.31 per share, compared to $106.0 million or $0.33 per share in the year-ago quarter. On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the third quarter. Analysts' estimates typically exclude special items.

Worldwide revenues for the quarter declined 15.7% to $2.04 billion from $2.42 billion in the same quarter last year. Revenues declined 13.4% on a constant currency.

Global Car Rental revenues decreased 11.5% or 8.9% on constant currency, to $1.76 billion from the year-ago quarter's $1.99 billion. The worldwide average number of company-operated cars during the third quarter was 445,200, down 9.3% over the prior-year quarter. However, revenues for worldwide equipment rental dropped 35.2% or 33.9% on constant currency, to $280.5 million from $433.1 million in the prior-year quarter.
Total expenses for the third quarter were $1.97 billion or 96.3% of revenues, lower than $2.40 billion or 96.3% of revenues, in the year-ago quarter, including direct operating expenses of $1.12 billion, lower than $1.35 billion in the prior-year quarter.

In order to overcome the prevailing global economic slowdown and the declining volumes in global car and equipment rental markets, the company in January initiated programs to further decrease costs by reducing employee headcount by about 4,000. The company expects to save $150 million to $170 million in 2009.

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