Ryder Reports Year-Over-Year Turnaround for Q2
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Ryder System Inc. saw growth across its business during the second quarter of 2021, the company reported July 28.
The Miami-based leasing and rental firm posted net earnings of $149.1 million, or $2.77 a diluted share, for the three months ending June 30. That compared with a net loss of $74.1 million, loss of $1.42 a share, during the same time the previous year. Total revenue increased by 26% to $2.4 billion from $1.9 billion.
“Our team delivered strong second-quarter results that exceeded our expectations,” Ryder CEO Robert Sanchez said in a statement. “We’re excited to see strong sales activity across all segments, reflecting continued strength in secular growth trends. Our innovative technology offerings, such as RyderShare, are strategic differentiators for us, as our customers seek expanded supply chain and transportation capabilities and increased resiliency.”
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Sanchez added the company continues to make progress on longer-term return initiatives. He expect these results to be driven by improved used vehicle sales results from strong demand and limited market inventory.
“Given our outlook for a strong freight environment going into 2022, we expect continued favorable performance in [fleet management solutions] driven by lease, rental and used vehicle sales,” Sanchez said. “We now expect nearly all of our leases to perform above target returns.”
The fleet management solutions segment saw Q2 revenue increase 18% to $1.4 billion from $1.2 billion last year. The segment’s bottom line rebounded to $158.5 million from a loss of $103.7 million last year. Revenue growth for the fleet management solutions segment reflected higher rental and lease revenue. The segment includes Ryder’s ChoiceLease, SelectCare and Commercial rental divisions.
Used vehicle pricing on trucks increased 72% while pricing on tractors increased 73% from the prior year, but available inventory fell to 4,300 units, well below the company’s targeted range of 7,000 to 9,000.
Meanwhile, rental results benefited from a 13% increase in pricing and better utilization. Lease results last quarter benefited from higher lease pricing and increased miles driven, but were partially offset by a smaller lease fleet. Ryder noted in the report that prior-year rental results were negatively impacted by the coronavirus pandemic.
The company’s Supply Chain Solutions segment reported a Q2 revenue gain of 49% to $775.6 million from $519.3 million last year. Earnings increased 11% to $41 million from $36.9 million during the prior-year quarter. The report attributed the increase to higher automotive revenues reflecting increased volumes and prior-year pandemic impacts. Total and operating revenue also increased by double-digit percentages due to new business and higher volumes in other industry verticals.
The dedicated transportation solutions segment saw Q2 revenue rise 21% to $354.7 million from $293.9 million. However, earnings fell 38% to $13.2 million from $21.2 million last year. The company attributed the revenue gain to new business and higher volumes; in particular, it cited business won from competitors and private fleet conversions. Segment revenue before taxes decreased primarily due to increased labor costs, higher insurance costs and strategic investments.
Ryder Supply Chain Solutions ranks No. 11 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It also ranks No. 11 on the TT Top 50 list of the largest logistics companies.
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