Aiming to achieve forecasted targets and counter 2011 losses, Tourism Holdings Limited (thl) announced it is planning to reduce its fleet in Australia and New Zealand over 2012.

Speaking at the company’s Annual General Meeting (AGM) earlier this month, chairman Keith Smith explained the Group would reduce its fleet size down under “to align our asset base with the expected activity levels”.

He explained the company was committed to improving its earnings next year even if current economic uncertainties continue to affect operations.

“[We] believe the company is strategically and financially robust, well-run and well-adapted to market conditions,” he said.

“It will gain from any improvement in markets, but in the meantime it expects to produce improve earnings even if the current conditions persist.”

Renewed focus comes as the Group experienced a $4.3 million drop in operating EBIT for the full year ending 2011 as well as a loss after tax for the year of $27.3 million.

Mr Smith added that looking ahead, the financial year for 2012 started off well, with Rugby World Cup business exceeding expectations in September for its New Zealand operations.

Meanwhile its 11 month ownership of its US based Road Bear business experienced gains to date of over US$3 million and are expected to be higher before the end of the year.

Since purchasing the business in December last year, the company saw its Road Bear fleet grew by up to 24 percent for this calendar year.

“This business has benefitted both from growth in tourism visitation in the USA and a strong used recreational vehicle market to sell its fleet into,” Mr Smith explained.

“As part of the due diligence process we reviewed learning’s from a number of New Zealand and Australian successes and failures in the USA to migrate risks where possible.”