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Nov 7 (Reuters) - Hertz Global Holdings Inc slashed its full-year profit forecast as the car rental company expects to take a hit from higher vehicle depreciation, sending its shares down nearly 30 percent in extended trading.
The company, which operates its fleet under brands such as Hertz, Dollar and Thrifty, forecast adjusted profit of 51 cents-88 cents per share for the year, compared with its earlier estimate of $2.75-$3.50 per share.
Revenue from the company’s U.S. car rental business, which is also its biggest, fell 1.9 percent to $1.71 billion for the third quarter ended Sept. 30.
Hertz’s net income from continuing operations fell 79.7 pct to $44 million, or 52 cents per share, from a year earlier.
“A customary vehicle depreciation rate review near the close of the third quarter resulted in a substantial depreciation adjustment, particularly on compact and mid-sized vehicles,” Chief Executive John Tague said in a statement.
Tague said he expected more adjustments in the current quarter.
The company’s revenue fell 1.3 percent to $2.54 billion, while total expenses rose 5 percent to $2.43 billion.
Excluding items, the company earned $1.58 per share for the quarter.
Analysts on average were expecting an adjusted profit of $2.73 per share and revenue of $2.59 billion, according to Thomson Reuters I/B/E/S.
Up to Monday’s close, shares of the Estero, Florida-based company had lost more than a third of their value this year. (Reporting by Radhika Rukmangadhan in Bengaluru; Editing by Anil D‘Silva)