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NAPLES — Car-rental giant Hertz says investors can no longer rely on its financial results dating back to 2011 and it plans to cut costs by $100 million.
The company did not specify how the proposed cuts would impact its operations in Southwest Florida. Hertz moved its corporate headquarters to temporary space in Naples from New Jersey last year and it is currently building an $85 million corporate campus in nearby Estero.
“The company is implementing actions to reduce costs by approximately $100 million annually, primarily through reduced general and administrative expenses, reduced information technology and capital investments, a reduction in external strategic advisor expenses, and a previously announced freeze to its pension plans,” Hertz says in a statement. “The company expects to achieve the full run-rate of these savings by year-end 2015.”
Mark Frissora, the chief executive who engineered the relocation of Hertz to Southwest Florida, resigned as chairman and CEO in September. The company's board is now reviewing accounting problems dating back to 2011 while it searches for a new CEO and it says results since then cannot be relied upon.
“In addition to the 2011 financial statements, as previously disclosed, the further requirement to restate the 2012 and 2013 financial statements will further lengthen the period for completion of the applicable accounting activities,” the company says in a statement. “Hertz does not currently expect to complete the process and file updated financial statements before mid-2015, and there can be no assurance that the process will be completed at that time or that additional adjustments may be identified.”
“The actions announced today are already underway, and are an important part of our efforts to improve the company's operating and financial performance and focus on the highest-return opportunities,” says Brian MacDonald, interim CEO of Hertz, in a statement. “While we are quickly moving forward, it will take time for the full benefits to be reflected in the company's results.”
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