Hertz Equipment Rental Corporation (“HERC”), an arm of Hertz Global Holdings Inc. HTZ, has been gearing up for its separation from the parent company. In its latest move, HERC announced that it has appointed Richard Marani as its Chief Information Officer (CIO). Marani, who is known for his expertise in the information technology (IT) industry, is expected to ensure proper technological support for smooth information systems transformation during the separation and for future development.
Marani has served in various leadership and senior management roles over the past 30 years and has a vast knowledge about the IT industry. His experience across industrial products, construction equipment, aerospace, and IT businesses will surely benefit HERC.
We note that this is the second big appointment in HERC this week after the appointment of Bruce Dressel as Chief Operating Officer yesterday. Dressel, utilizing his experience in the equipment rental industry will comprehend a growth strategy for HERC in order to boost its performance.
In Mar 2014, Hertz announced the decision to separate the company into two independent, publicly traded companies. The first company will include its car rental businesses, comprising Hertz, Dollar, Thrifty and Firefly as well as its fleet-leasing services division Donlen. The second company, HERC, was to run Hertz’s equipment rental business.
We expect Marani to be another value addition after Dressel to HERC’s senior management as the company prepares to become independent.
Hertz Global Holdings has been under the scanner due to the accounting errors identified in its 2011 financial results. This entails complete review of its financial results for fiscal years 2011, 2012 and 2013.
Previously, Hertz had stated that it will take some time to file updated financial statements owing to these accounting issues. We note that Hertz has not yet filed its statements and there still remain uncertainties as to when it would.
Hertz carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the same industry include comScore, Inc. SCOR, PFSweb Inc. PFSW and Rentrak Corporation RENT. All three stocks carry a Zacks Rank #1 (Strong Buy).
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