| Dollar Thrifty shares plummet
Shares of Dollar Thrifty Automotive Group Inc. plunged 37 percent Monday following news late Friday that the company expects its 2007 profit to be lower than forecast.
The Tulsa-based rental car company saw its share price drop $9.62 to close at $16.40 on the New York Stock Exchange. More than 3.4 million shares were traded.
It was the biggest drop since Dollar Thrifty's initial public stock offering in December 1997, according to Bloomberg data.
The stock price also reached a new 52-week intraday trading low of $16.27, in contrast with a 52-week high of $55.30 last Feb. 14.
The 52-week high coincided with rumors that Dollar Thrifty and Tulsa-based Vanguard Car Rental USA Inc. were in merger talks. Such a deal never materialized.
Year in review: Rental car industry finishes tumultuous year
In the rental car business, 2007 was a year of consolidation and retrenchment.
At the beginning of the year, industry insiders told the New York Times that two Tulsa-based rental car companies, Dollar Thrifty Automotive Group Inc. and Vanguard Car Rental USA Inc. were in merger talks on a deal that could be worth $3 billion.
Weeks later, on March 30, St. Louis-based Enterprise Rent-A-Car announced it was acquiring Vanguard.
At the time the deal was an nounced, Vanguard had 10,000 employees, 700 of them in Tulsa. Enterprise had 64,500 employees, including about 100 in Tulsa.
The merger was completed in August. By October, 300 of Vanguard's 700 Tulsa-based employees had been laid off or transferred, company executives said.
Dollar Thrifty also had a tumultuous year, marked by layoffs from lower to management levels as the company sought to cope with higher car and fleet financing costs.
Dollar Thrifty stock plunges
The stock of Tulsa-based Dollar Thrifty Automotive Group plunged Monday, after the company sharply lowered its earnings estimate late Friday. The stock of the rental-car firm had its biggest drop in more than 10 years, falling $9.62 a share to $16.40 in New York Stock Exchange Trading. Dollar Thrifty officials estimated Friday that 2007 profit could be 90 cents to 95 cents a share, down from their November forecast of $1.75 to $1.85. Demand over the Thanksgiving and Christmas holidays was below expectations, CEO Gary L. Paxton said in a press release Friday. The company will report earnings on Feb. 28. .
Thrifty Car Rental Rolls Prepaid Tolls Into Rental Rates in Florida ...
TULSA, Okla., Jan. 7 /PRNewswire-FirstCall/ -- Thrifty Car Rental, a subsidiary of Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) is minimizing the stress that takes a toll on globetrotting travelers. That's why it's including Pass24(R) Prepaid Toll Service with select car rental rates at participating Florida locations when customers use any American Express(R) card for payment and make their reservation using Promo Code AXTL. This offer is valid at participating Florida locations through March 31, 2008. "In our quest to constantly improve the customer experience, Thrifty Car Rental is committed to making travel more convenient for customers," said Brian Carpenter, vice president of sales, marketing and advertising. "With this promotion in Florida, not only will travelers get a great rate with Thrifty, they'll also get the convenience of pre-paid tolls with Pass24." Ordinarily, Pass24 pre-paid toll service is available to Thrifty Car Rental customers for $5.95 per day or $27.95 per week in Florida, which includes all toll charges.
Thrifty Car Sales Opens Eight Dealerships in Six States
TULSA, Okla., Nov. 26 /PRNewswire-FirstCall/ -- Thrifty Car Sales, a subsidiary of Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) , is turning up the heat on expansions, recently adding eight locations to its national network of franchised used car dealerships. New dealerships are opening in markets that include Baxley, Ga.; Louisville, Ky.; Albuquerque, N.M.; Bixby and Pryor, Okla.; East Providence, R.I.; and Spokane, Wash. In Baxley, Ga., dealer Keven Carter opened a Thrifty Car Sales dealership at 755 W. Parker St. Carter has been in the automotive business for more than 10 years, most recently as Sales Manager at Woody Folsom Chevrolet. Steve Sternberg, a Thrifty Car Rental and Truck Rental franchisee for more than 32 years, has opened a dealership at 6507 Preston Highway in Louisville, Ky.
Dollar Thrifty purchases Wichita Mid-Continent Airport franchises
Dollar Thrifty Automotive Group Inc. has acquired the Thrifty Car Rental and Dollar Rent A Car in-terminal franchises at Wichita Mid-Continent Airport. The Thrifty Car Rental location was acquired from Flacks Enterprises LLC, based in Kansas City, Mo. The Dollar Rent A Car operation was acquired from E & J Rental & Leasing Inc., owned by Wichitan Dave Johnson. Since 1995, the Dollar location has been the only locally-owned rental car company at the Mid-Continent Airport. The acquisitions were part of a move to bring franchises under corporate ownership at several major Midwestern airports. .
Dollar Thrifty Hits a Big Pothole
The problems of the car rental business are deepening. On Feb. 4, Dollar Thrifty Automotive Group (DTG) shares plunged 35% after the firm nearly cutting in half its expectations for 2007 profits. Dollar Thrifty's news jolted the industry, raising worries that U.S. consumers are cutting back on their travel spending. Dollar Thrifty's larger rivals, Hertz Global Holdings (HTZ) and Avis Budget Group (CAR), at one point on Feb. 4 had fallen as much as 7% and almost 14% respectively. Fears of a recession add to the difficulties for car rental firms, already battling it out in a brutal business. The car rental industry's problems are similar to those of the airline industry, which has been notoriously tough on investors. Both are highly competitive industries with high fixed costs, so they find it tough to squeeze out profits on a regular basis.
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