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Hertz Reports Earnings for Third Quarter

14 October 1997

Hertz Reports Record Earnings for Third Quarter

    PARK RIDGE, N.J., Oct. 14 -- The Hertz Corporation
, the world's largest car rental company and the largest domestic
industrial and construction equipment rental business, reported record pretax
earnings of $161.7 million and after tax earnings of $93.4 million for the
third quarter of 1997 or $0.86 per share, up 25.9 percent from the
$74.2 million or $0.69 per share earned in the same period last year.  The
increase for the third quarter of 1997 reflected continued strong performance
in the domestic car rental market both in terms of increased transaction
volume and upward movement in pricing.
    Net income for the first nine months of 1997 was $167.1 million, up
36.3 percent from the $122.5 million earned in the same period in 1996.
    Hertz achieved record revenues of $1.1 billion in the third quarter of
1997, up $42.1 million from the same period last year.  Before the impact of
changes in foreign exchange rates, the revenue increase would have been an
estimated $70 million, reflecting an increase of 6.6 percent compared with
last year.
    Record revenue, for the third quarter, 1997, from domestic car rental and
franchise operations was $709.4 million, up 9.1 percent from the same period,
1996.
    International operations generated revenue of $263 million for the third
quarter, 1997, a 9.7 percent decline compared with the same period last year.
Before the impact of changes in foreign exchange rates, and adjusted for the
franchising of Denmark and Norway, which had been corporately owned, revenue
would have been 3.6 percent higher than the third quarter, 1996.
    Revenues from industrial and construction equipment rental operations of
$122.8 million in the third quarter of 1997 increased $13.1 million or
approximately 12 percent over the third quarter last year, primarily as a
result of increased volume attributable to the opening of 19 new domestic
equipment rental locations during the first nine months of 1997 and increased
penetration of the industrial equipment rental market.
    The Hertz Corporation, headquartered in Park Ridge, N.J., operates
approximately 5,500 rent-a-car locations throughout the U.S. and in
approximately 140 foreign countries and 139 equipment rental locations in the
U.S., France and Spain.

                            THE HERTZ CORPORATION
                       Consolidated Statement of Income
                          (In Thousands of Dollars)
                                  Unaudited

                               Three Months               As % of
                             Ended September 30,       Total revenue
                           1997            1996        1997     1996
    Revenue            $1,102,142      $1,060,028     100.0%   100.0%
    Expenses:
     Direct Operating     479,426         485,968      43.5%    45.8%
     Depreciation of
      revenue earning
      equipment           266,947         246,006      24.2%    23.2%
     Selling, General
      and Administrative  113,244         108,111      10.3%    10.3%
     Interest - net        80,829          81,694       7.3%     7.7%
      Total expenses      940,446         921,779      85.3%    87.0%
    Income before income
     taxes                161,696         138,249      14.7%    13.0%
    Income taxes           68,262          64,041       6.2%     6.0%
    Net income            $93,434         $74,208       8.5%     7.0%
    Net income per share    $0.86           $0.69        --       --

SOURCE  Hertz Corporation