Hertz Withdraws 2014 Guidance, Shares Fall

(RTTNews) - Car and equipment rental firm Hertz Global Holdings, Inc. (HTZ) said it has decided to withdraw its financial guidance for full year 2014, citing potential revisions related to ongoing accounting review. The shares fell more than 12 percent in the morning trade.

Hertz noted that the Audit Committee of the company's board of directors has directed the firm to conduct a review of financial records for fiscal years 2011, 2012 and 2013 and their impact, if any, on 2014.

According to the firm, the review may identify additional errors and require Hertz to make further adjustments to the 2012 and 2013 financial statements. As previously disclosed, the company will restate its 2011 and revise its 2012 and 2013 financial statements, Hertz said in a regulatory filing on Tuesday.

Hertz now expects to be well below the low end of its 2014 guidance due to operational challenges in the rental car and equipment segments as well as the associated costs related to the accounting review.

The ongoing challenges include record level, industry-wide OEM vehicle recall activity, which has constrained the company's U.S. fleet available for rent. It also sees significantly higher-than-expected adjusted direct operating expense in U.S. rental car.

Further, the company noted that George Tamke has notified the board of directors of Hertz Global Holdings, and the Hertz Corp., that he is retiring as a director and as independent lead director of the board.

The board has designated current independent director, Linda Fayne Levinson, as independent lead director of the board.

Recently, Scott Sider retired as Group President Rent A Car, or RAC Americas of Hertz.

HTZ is currently trading at $27.62, down $3.94 or 12.48 percent, on a volume of 26.38 million shares.