Avis Budget Group (CAR) Guides Lower for Q2

July 2, 2008 8:13 AM EDT

Avis Budget Group, Inc. (NYSE: CAR) commented on events and trends impacting the vehicle services operating climate and the Company's financial performance.

"While our cost-saving efforts related to our Performance Excellence initiative are accelerating as planned, the second quarter has turned out to be a significantly more challenging operating environment than expected. As with our entire industry, we are confronting rising fuel costs, weaker-than-expected enplanements, lower commercial travel volumes and lower time and mileage rates per day," said Ronald L. Nelson, Chairman and Chief Executive Officer, Avis Budget Group. "As a result, our second quarter results will be below last year's."

"In addition, we continue to expect to generate significant free cash flow as a percentage of pretax income in 2008, and we will consider deploying cash to reduce indebtedness or to repurchase stock, as both alternatives appear remarkably attractive."

Avis Budget Group, Inc. (Avis Budget) provides car and truck rentals and ancillary services to businesses and consumers in the United States and internationally. [SM]

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