TULSA, Oklahoma -- Tulsa-based Dollar Thrifty raised its 2011 profit outlook on Tuesday.
In a news release, the company said the primary reason for the improved numbers is lower fleet cost expectations and confidence in the upcoming summer rental season.
The company [www.dtag.com] says right now it's seeing a very robust used vehicle market.
"We are now in the prime selling season for used vehicles, and are realizing very favorable results based on the vigor of the used car market combined with our enhanced pricing strategies. Accordingly, we have revised our fleet cost targets to reflect continued favorable market conditions. Furthermore, since our year-end earnings call, the rental pricing and volume environment have improved following the winter storms that impacted January and February. The combination of these factors has given us significantly greater confidence in our 2011 operating performance," said Scott L. Thompson, President and Chief Executive Officer.
The news release says Dollar Thrifty expects rental revenue for the first quarter to be flat to down one percent compared to the first quarter of 2010, thanks in part to the impact of winter storms on rental revenues.