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UPDATE 1-Dollar Thrifty raises lower-end of FY profit forecast
November 1, 2012 / 11:21 AM / in 5 years

UPDATE 1-Dollar Thrifty raises lower-end of FY profit forecast

Nov 1 (Reuters) - Dollar Thrifty Automotive Group reported better-than-expected quarterly results, helped by increased car rental demand, and raised the lower end of its full-year earnings forecast.

The company, in the process of being taken over by rival Hertz Global Holdings Inc, said it now expects to earn at least $5.50 per share for 2012, up from the $5.25 it expected earlier. The top end of its forecast remains unchanged at $5.70 per share.

Net income fell to $55.5 million, or $1.91 per share, for the third quarter, from $66.6 million, or $2.13 per share, a year earlier.

Dollar Thrifty said it took merger-related charge of $5.7 million in the quarter.

Hertz plans to buy Dollar Thrifty for $2.56 billion to boost its rental offering in the cheaper off-airport market, but is reported to be facing regulatory hurdles.

July-September rental revenue at Dollar Thrifty rose about 1.5 percent to $442.3 million. Total revenue rose 2 percent to $460.6 million.

Analysts on average expected it to earn $1.69 per share on revenue of $454.1 million, according to Thomson Reuters I/B/E/S.

Hertz Global Holdings reported a better-than-expected quarterly profit, benefiting from the recovering business and travel in the US.

Dollar Thrifty shares, which have risen 8 percent in the last three months, closed at $77.00 on the New York Stock Exchange on Wednesday.

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