ANC Rental’s Loss Is Wider Than Forecast

ANC Rental Corp., parent of Alamo and National car-rental companies, said that its fourth-quarter loss is at least three times larger than forecast and that Chief Executive Michael Karsner had resigned. ANC stock plunged 43%. The company lost $45 million to $50 million on revenue of about $800 million. It had forecast a loss of as much as $15 million, spokeswoman Cheryl Budd said. Lower-than-anticipated demand in North America led to the larger loss at the Fort Lauderdale, Fla.-based company. Chairman Michael Egan, 60, will assume the CEO position that Karsner, 41, held since November 1999. AutoNation Inc. spun off ANC in June to focus on selling new vehicles, while car-rental stocks were dragged down by concerns that higher interest rates would cool demand and boost expenses. ANC’s shares slid $1.50 to close at $2 on Nasdaq, their biggest one-day decline. Daily revenue for car rentals at North American airports was 5% below the year-earlier quarter, more than the projected decline of 2% to 3%.