In a news release, PHH said in Q1/13, Fleet Management Services segment profit was $21 million, up $1 million from the Q4/12 but down $3 million from Q1/12. PHH said the sequential quarter segment profit growth was driven by a slight improvement in our leasing business, and the segment profit decline from the first quarter of 2012 was driven primarily by a decline in Fleet management fees and lower syndication results.

PHH said its net investment in fleet leases at March 31, 2013 of $3,678 million, represented a 1% increase compared to the end of 2012, while average leased vehicle units declined 1% during the first quarter of 2013. This was the result of higher-capitalized units continuing to replace lower-cost vehicles, consistent with our emphasis on service fleets.

PHH’s average fleet size in Q1/13 was 258,000 leased vehicle units, down 4% from 269,000 leased vehicle units in Q1/12.

In the first quarter of 2013, Fleet management fees decreased to $43 million from $47 million in the first quarter of 2012, primarily driven by lower client participation in driver safety training services. Fleet management fees in the first quarter of 2013 were relatively unchanged from the fourth quarter of 2012.