The Business Times

Hertz raises impact of accounting errors

Published Thu, Feb 26, 2015 · 09:50 PM
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Southfield, Michigan

HERTZ Global Holdings estimated an additional US$125 million of errors in its ongoing review of financial statements and doubled its cost-saving target to US$200 million. The errors had a cumulative effect on pretax income under generally accepted accounting principles of about US$28 million in 2013, US$74 million in 2012 and US$51 million in 2011, including US$28 million that had been previously disclosed. Those figures may change before the investigation is complete, which probably won't happen before July, the company said on Wednesday.

Chief executive officer John Tague, who was hired in November, said the company is attacking waste in the organisation, adding US$100 million to the annual cost-saving target. The Naples, Florida-based company said it's also reviewing its leadership, organisational talent, data integrity and decision-support systems. "While the full benefit of these and other actions will take time, I am confident that Hertz is on the right path to deliver improved performance and value creation," Mr Tague said.

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