UPDATE 1-Hertz 4th-qtr net up, but sees savings, job cuts

(Adds details about results, forecast)

NEW YORK, Feb 20 (Reuters) - Hertz Global Holdings Inc (HTZ.N) said on Wednesday its fourth-quarter profit rose on an increase in worldwide car rental revenues, but said it expects to cut jobs and improve efficiency to generate savings.

The company said the results were achieved "despite economic headwinds in the U.S. affecting demand and pricing in the car and equipment rental businesses."

It forecast annualized net savings, before restructuring costs, of about $250 million during 2008.

The savings are to come from ongoing efficiency initiatives, including outsourcing certain work functions, re-engineering work processes and other programs that will also result in job reductions during the year, it said.

Net income in the quarter was $80.7 million, or 25 cents per share, compared with $39.8 million, or 14 cents per share, a year earlier. Revenue rose 7.4 percent to $2.14 billion.

On an adjusted basis, Hertz earned 29 cents per share for the fourth quarter. Analysts, on average, had expected the Park Ridge, New Jersey-based company to earn 26 cents per share on revenue of $2.07 billion, according to Reuters Estimates.

Car rental revenue rose 7.5 percent to $1.67 billion, driven by an increase in transaction days. Revenue from worldwide equipment rental was up 7.4 percent to $468.1 million.

Looking ahead, Hertz forecast 2008 revenue of $8.9 billion to $9 billion. It expects full-year adjusted earnings per share of between $1.38 and $1.44.

Analysts expect it to post a profit per share of $1.42 and revenue of $9.04 billion for the year, according to Reuters Estimates.

Hertz operates 7,900 car rental locations and ranks as the largest airport-based car rental agency in the U.S. market. It also rents tools and equipment through a subsidiary. The company was spun off by Ford Motor Co (F.N) in 2005. (Reporting by Paritosh Bansal; Editing by Gary Hill and Braden Reddall)