Ryder’s Third-Quarter Income Rises to $83.7 Million
Ryder System said third-quarter earnings rose from a year ago as fleet management revenue increased.
Net income rose to $83.7 million, or $1.57 a share, from $71.1 million, or $1.35 cents, a year ago.
Revenue rose 3% to $1.69 billion, the company reported Oct. 22.
Revenue for the Fleet Management Solutions segment rose 4% to $1.19 billion, and the Supply Chain Solutions segment’s revenue rose 1% to $617.8 million.
“We’re pleased that our full-service lease fleet grew sequentially in the third quarter and remains on track for our full-year target. In commercial rental, we continue to see strong demand and pricing on a larger fleet. Used-vehicle pricing remained strong, reflecting both a shift toward more sales through our retail channel and higher pricing across all channels,” Ryder Chairman and CEO Robert Sanchez said in a statement.
“Our Supply Chain Solutions business was impacted by lost business from earlier in the year and, to a lesser extent, start-up costs on an international distribution management account,” Sanchez said.
The company raised its full-year earnings forecast to a range of $5.55 to $5.60 per share from a range of $5.50 to $5.60. Fourth-quarter earnings are expected to be $1.56 to $1.61 per share.
“We expect many of the same factors that drove record third-quarter revenue and earnings performance to continue in the fourth quarter. Our Fleet Management Solutions segment should continue to deliver strong revenue and earnings growth. Demand and pricing trends in our transactional rental and used-vehicle sales businesses have remained favorable in October and are expected to continue,” Sanchez said.
Miami-based Ryder System, is the parent company of Ryder Supply Chain Solutions, which ranks No. 11 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers.
