Hertz centre's €2.7m restructuring leads to 20pc profit dip for 2008
Restructuring costs totalling €2.7m at the Dublin-based Europe Services Centre for car-hire giant Hertz contributed to pre-tax profits at the firm dropping by 20pc to €10.8m in 2008.
According to accounts recently returned to the Companies' Office, Hertz Europe Services Centre's (HESC) turnover dropped by 5pc from €65.6m to €62.1m the end of December 2008.
The directors state: "Despite the difficult trading conditions, as in previous years, HESC has exceeded our stated financial expectations."
The directors state that "2008 has proved a very challenging year for HESC as the global downturn in worldwide car rental in both Hertz Holding's corporate and leisure markets took its toll".
They add: "The Hertz Corporation moved to right size their operations worldwide to deal with the current economic climate and HESC was part of this process."
HESC was established in Dublin, in 1996, as part of Hertz's centralisation strategy to provide reservation, customer and accounting services to each of the company's nine European markets and also to offer European Middle East and Africa (EMEA) franchisee support.
The directors state that Hertz's European general accounting functions is now based at the Dublin Shared Service Area.
The filings also show that the company's operating profits dropped by 33pc from €10.9m to €7.3m and the company's accumulated profits last year amounted to €106.3m.
A breakdown of the company's turnover shows that the company's busiest market is the USA where it generated €18m. However, the USA market was also the hardest hit with revenues down 17pc.
Hertz Europe Service Centre is part of the US-owned Hertz corporation.
Globally, Hertz had revenues last year of $8.5bn, employing 25,000 people.