Car hire group Avis Europe today posted a sharp fall in full year profits as it was hit by lower rental prices, increased fleet costs and restructuring charges.
Total pretax profits slumped to €10.7 million in 2006, down from €20.1 million in the previous year.
Chief executive Murray Hennessy also warned that market conditions in the industry remained difficult, adding that although his expectations for 2007 remained unchanged, he expected the future environment to be more difficult than predicted two years ago.
Avis, which has struggled to revive its business in the wake of September 11th, made savings of €11 million in the year to December 31st, and said it planned to cut costs by a further €14 million in 2007.
Total restructuring costs came in at €26 million in the year, with a further €10 million of costs expected in 2007.
The company said it had been hit by increasing fleet costs, which had risen above the rate of inflation, and increased staffing costs - despite significant staff reductions.
PA