Avis Budget Reports $57M Profit

PARSIPPANY, N.J. (AP) — Avis Budget Group Inc. reported a small profit on Monday after losing $1 billion a year earlier on write-downs.

The car-rental company said it earned $57 million, or 54 cents per share, during the third quarter, which ended Sept. 30. Its year-ago loss was $9.91 per share.

Revenue fell 13.9 percent to $1.47 billion from $1.7 billion a year earlier.

Analysts surveyed by Thomson Reuters were expecting a profit of 55 cents per share.

The company said domestic leisure pricing rose 13 percent, and strength in the used car market helped the company shrink its fleet. Earnings before interest, taxes, depreciation, and amortization rose 17 percent to $165 million from a year earlier.

However, car rental revenues fell 14 percent, driven by a 21 drop in rental days.

The company said it expects rental volumes to drop again in the fourth quarter. However, it said demand seems to have stabilized, and that it expects pricing to keep improving into the fourth quarter.