Hertz To Restate 2012, 2013 Results; Announces New Fleet Strategy, Cost Cuts

Hertz Global Holdings said on Friday that during an accounting review and investigation, it determined that, in addition to 2011 financial statement, it also needs to restate 2012 and 2013 quarterly and annual financial statements. The rental car company also announ ced a new fleet purchasing strategy, aimed and improving its U.S. rental car business, and also said it was implementing a $100 million cost reduction plan. Hertz's stock rallied 3.3% in premarket trade. As part of the new fleet strategy, Hertz said it would buy roughly 350,000 model 2015 vehicles in the U.S., or about 60% more than the model 2014 vehicles. The company added that it increased its fourth-quarter 2014 U.S. risk vehicle dispositions by 45%. The cost-cutting plan will include reduced general expenses and technology investments, as well as a previously-announced freeze to its pension plans. The stock had dropped 21% year to date through Thursday, compared with a 10% gain in the S&P 500.

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