Dollar Thrifty 3Q profit jumps 67 percent

TULSA, Okla. - Dollar Thrifty Automotive Group Inc. said Wednesday its third-quarter profit rose 67 percent as lower losses from derivatives offset a drop in vehicle rental revenue.

But the company also warned that it expects to post a loss for the fourth quarter and the full year as a result of worsening economic conditions and the ongoing problems in the airline and automotive industries.

Dollar Thrifty earned $18.9 million, or 87 cents per share, up from $11.3 million, or 48 cents per share, for the same quarter in 2007.

The recent quarter's results included a loss of 2 cents per share related to a decrease in fair value of derivatives compared with a loss of 54 cents per share in the 2007 quarter.

Excluding those losses, the company posted an adjusted profit of $19.3 million, or 89 cents per share, compared with an adjusted $24.1 million, or $1.01 per share in the year-ago period.

Total revenue fell 4.1 percent to $500.6 million from $522 million the same period last year.

Analysts polled by Thomson Reuters expected a profit of 60 cents per share, excluding the decrease in fair value of derivatives, on $504.2 million in revenue.

Vehicle rental revenue fell 4.8 percent to $477.1 million. Dollar Thrifty said the quarter's revenue was hurt by a 2.2 percent decrease in revenue per day, along with a 2.7 percent drop in rental days and a bankruptcy protection filing of one of its tour operators.

Per vehicle depreciation costs fell about 1.2 percent while vehicle utilization, a measure of fleet efficiency, rose 80 basis points to 85.2 percent.

Dollar Thrifty shares jumped 31 cents, or 17.8 percent, to $2.05 in electronic trading before the opening bell Wednesday.

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