Avis Budget Group Inc. CAR shares tanked Tuesday after an executive warned that fleet costs will be higher than expected and that business in Europe was weak over the summer.
Avis traded recently down more than 6 percent at $55.23 per share.
Chief Financial Officer David B. Wyshner made the remarks at an investment conference Tuesday sponsored by Deutsche Bank and said that fleet costs will be above the higher end of the company's previously predicted range.
The Parsippany, New Jersey-based car rental company in August had forecast monthly 2014 fleet costs of $295 to $305 per unit, up 2 percent to 5 percent from 2013.
On Tuesday, Wyshner also forecast $425 million in free cash flow for 2014, rising to $545 million in 2015.
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