PHH Considers Spinning Off Fleet Unit
Photo courtesy of PHH.
PHH Corp. increased revenue from its PHH Arval fleet management division by 1.14 percent in 2013 compared to the earlier year, the company reported Tuesday.
PHH Corp. is also considering spinning off its fleet division and has hired J.P. Morgan Securities, Centerview Partners, and Kirkland & Ellis to explore that option.
"Our decision to explore a separation or sale of our businesses reflects our determination to maximize shareholder value," said Glen Messina, president and CEO.
Revenue reached $88 million, a $1 million increase from 2012, from PHH Arval's fleet management, maintenance, leasing and fuel-card programs for the year.
While the company's annual fleet revenue increased minimally, PHH Arval recorded a strong fourth quarter that saw profit increase $2 million to $22 million. The growth was due to increases in truck lease syndication and higher revenue from services such as maintenance, fuel, and accident management. In the leasing segment, fleet management fees fell $5 million for the year primarily due to lower usage of driver training services, according to the company.
PHH Corp. reported overall results, which also include revenue from PHH Mortgage. Overall, the company reported net income of $135 million. For the year, the company reported core earnings at a loss of 32 cents per share.