PHH Corp.’s Fleet Segment Shows $21 million Profit in Q3
MT. LAUREL, NJ - PHH Corporation announced its third-quarter financial results for the period ended September 30, 2011. Overall, the company reported a GAAP net loss of $148 million. The fleet segment, however, showed a profit of $21 million which was up 24 percent from the third quarter 2010. PHH added that third-quarter 2011 segment profit was $4 million more than in the third quarter 2010, and $2 million greater than in the second quarter of 2011.
The company said its fleet lease income went up by $28 million in the third quarter of 2011 when compared with the same period in 2010. PHH said this was a result of a $31 million increase in lease syndication revenue offset by other expenses, primarily due to the higher cost of goods sold related to the lease syndications. That income was also offset by a decrease in lease revenue attributable to fewer units under lease.
PHH said its fleet management fees increased to $42 million in the third quarter 2011, up from $38 million in 2010. This revenue change is the result of an increase in fee-for-service unit counts.
The company said its maintenance, fuel, and accident management services all saw an increase in Q3 2011 compared with 2010, despite a 6-percent decline in the number of leased vehicles the company is managing.