Profits halve at car rental firm

Car rental group Avis Europe has reported a steep drop in profits and warned of more problems to come.

Underlying pre-tax profits sank 51% to 59.4m euros (£39.6m) as the firm battled fierce price competition.

Avis Europe was also hit by the war in Iraq when a downturn in business travel reduced the demand for rented cars.

There was more bad news as chairman Bob Reid warned: "We are not assuming any significant recovery in demand and therefore pricing in 2004."