Car-rental company Dollar Thrifty Automotive Group Inc said it will close about 10 more locations in the rest of 2009, as part of its pre-announced plan to do away with underperforming and non-profitable locations.
The company said it does not expect any restructuring charges related to the closures. It did not incur any significant restructuring charges tied to prior closures.
Dollar Thrifty, which has closed about 115 corporate-owned locations in the United States and Canada since October 2008, said the locations closed to date represented about 4 percent of 2008 rental revenue.
Rental car companies, like Dollar Thrifty, Hertz Global Holdings Inc and Avis Budget Group Inc, have been hurt by the slowing economy as customers cut their discretionary spending on travel, translating to lower rentals.
We do not anticipate any significant additional closures in future periods, Chief Executive Scott Thompson said in a statement.
Shares of the Tulsa, Oklahoma-based company closed at $23.46 Monday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Ratul Ray Chaudhuri)