Hertz CEO Retiring; President to Take Over

Hertz Corp. said Frank A. Olson will retire as chief executive at year’s end as it reported a 17% increase in third-quarter earnings.

Hertz named President Craig R. Koch to succeed Olson, 67, who will retain his duties as non-executive chairman of the world’s largest car-rental company. His decision to step down as CEO after 23 years wasn’t a surprise, analysts said. Koch, 52, joined Hertz in 1971 and was named president and chief operating officer in 1993.

The company, which is majority owned by Ford Motor Co., said its third-quarter profit rose to $139 million, or $1.28 a share, from $118.7 million, or $1.09, a year ago, on increased rentals of both cars and industrial and construction equipment. The Park Ridge, N.J.-based company was expected to earn $1.25 a share, the average estimate of analysts surveyed by First Call Corp.

Revenue rose 9.8% to $1.34 billion. The bulk of sales came from its U.S. car rental operations, which rose 6.5%. Industrial and construction equipment rental revenue rose 23%.

The company’s U.S. daily car rental rates for the quarter fell 1.4% to $42, while its international car-rental rates slid 5.1% to $37.78 a day. The company blamed aggressive discounting at rival AutoNation Inc.’s National and Alamo car-rental units for the lower rates.

Shares in Hertz closed down 25 cents at $42.56 on the New York Stock Exchange.