Ryder First-Quarter Earnings Rise 5%
Stronger supply chain and dedicated unit profits helped Ryder System Inc. to raise net income 5% to $56.2 million, or $1.05 per share.
Miami-based Ryder, whose Supply Chain Solutions unit ranks No. 13 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, reported 26% higher profit of $19.8 million before taxes at the logistics unit. Dedicated profit on that basis climbed 59% to $14.3 million. Revenue was 15% higher at Dedicated and 8% greater at the logistics business. Profit at both units was tied to increased volumes and stronger pricing.
The fleet management business, the largest unit with about 70% of revenue, saw profit before taxes slip 8% to $82.9 million, hurt by weaker utilization and declining used truck prices. Companywide, revenue rose 4% to $1.63 billion.
“The strong performance of our contractual businesses, as well as cost actions we took early in the year, enabled us to overcome a challenging used sales and rental market,” CEO Robert Sanchez said, noting that outsourcing was a key factor in the improved results.
