Friday, November 6, 2009

Avis-Budget Group 3rd Quarter 09'

Avis-Budget is one of the leading Car rental brands in the world. It has two branches of agencies that rent cars to anyone and everyone. With very few decreases on record, this company is thriving.

In the third quarter months of 2009 (ending september 30th), Avis has released information regarding their sales results. Their revenue was well over 1.5 Billion dollars. This is a 13% decrease from a year-over-year basis. This is due to a 21% decrease in rental days recently.

Their Fleet (Car inventory) cost decreased by 25% mostly due to a 21% decrease in average fleet use. Their cost was actually better than anticipated because of the temporarily low gas prices during the summer.

International sales were down 9.1%. Avis reports that this is entirely do to the impact of the exchange rates costing them over $10 million dollars. Their projection is that this cost will be offset by the fourth quarter.

Avis projects that the rental demand will be stable during the fourth quarter and into the 2010 year. While the projection for the 4th quarter is lower than the third, they expect to catch up and increase in 2010. They also expect to keep the size of its rental fleet the same through the end of 09' and a possible 15% increase in size by 2010's second quarter. The company also expects to launch a program that will help minimize costs and enhance productivity called the Performance Excellence Initiative. They expect the benefits of this program to exceed $100 million dollars by the end of 09' and an annual savings generated of $270 million in following years.

Overall, this company is moving in directions to increase sales and meet demands. They are projecting that the 2010 revenue will increase upon the 08-09 years.

I know that in the last 6 months I have used nothing but Avis because I have never had a bad experience with them. I travel alot because of my job, and renting cars has always been a drag. The last six months have been significantly easier because of the help Avis has been able to provide. When our company has outings and business trips, we rent up to 8 or 9 cars. And Avis has been more than patient enough with us and our large orders. I am more than excited to hear that they are pulling through in a hard time so that I can continue renting with them in the future.


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