(Reuters) – Hertz Global Holdings said on Thursday it intends to raise $750 million through secured notes offerings, as it looks to shore up its balance sheet after a failed bet on electric vehicles.
In early June, Hertz named Spirit Airlines CFO Scott Haralson as its new finance chief, after the declining demand for the EVs in its stock pushed the company into further losses.
With weak demand for EVs weighing on earnings, Hertz is slimming down the business and plans to sell 10,000 more EVs, taking its total planned sales to 30,000 this year.
Hertz said on Thursday it may not achieve the 11,000 remaining planned EV disposals in the time and manner it expects.
It also expects elevated vehicle depreciation to continue throughout 2024.
The Estero, Florida-based company took a $588 million hit in vehicle depreciation costs during the first quarter ended March 31, of which $195 million was related to EVs held for sale.
Hertz had also reported a quarterly loss of $1.28 per share, much wider than the 44-cent loss Wall Street expected. It has missed analysts’ estimates for earnings per share for the past three quarters.
The company’s shares, which were up 2.6% in premarket trading on Thursday, have lost over 70% of their value so far this year.
(Reporting by Ananta Agarwal and Shivansh Tiwary in Bengaluru; Editing by Mrigank Dhaniwala and Krishna Chandra Eluri)
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