Avis Europe Warns of Reduced Profits
Avis Europe PLC warned that 2003 profit will be driven down by nearly 100 million Euros in charges, and 2004 profit is likely to be flat, with no upturn in demand expected.The car-rental company, with headquarters in Bracknell, England, said 2003 revenue is expected to fall 3 percent. Net income is likely to be hit by charges related to the expected sale of parts of Centrus, Avis Europe’s unprofitable accident-management company, as well as by information-technology restructuring costs and a goodwill write-down.Avis Europe said 2003 profit before tax and amortization is likely to meet market consensus estimates of 60 million Euros. That would be less than half of the 122 million Euros before tax, goodwill, and amortization the company reported for 2002. Avis Europe said it expects restructuring costs will eat into profit.