Ryder Reports Record Second Quarter 2015 Results

Ryder System, Inc. (NYSE: R), a leader in commercial fleet management, dedicated transportation, and supply chain solutions, reported record second quarter comparable earnings.

Highlights were:

• Record Q2 Comparable EPS from Continuing Operations Up 15% to $1.65
• Record Q2 EPS from Continuing Operations of $1.61 Increase 13%
• Record Q2 Operating Revenue of $1.4 Billion Grows 6%
• Total Revenue Declines 1% to $1.7 Billion, from Lower Fuel Costs Passed Through to Customers

The Company reported record second quarter operating revenue (revenue excluding all fuel and subcontracted transportation), reflecting higher full service lease revenue, growth in commercial rental revenue, as well as new business and increased volumes in SCS and Dedicated Transportation Solutions (DTS), partially offset by negative impacts from foreign exchange.

Second quarter total revenue, the company advised, “declined primarily due to lower fuel prices passed through to customers, partially offset by higher operating revenue.”

Commenting on the Company’s second quarter performance, Ryder Chairman and CEO Robert Sanchez said, “We delivered a quarter of solid operating revenue growth across all segments of our business. We realized strong operating leverage with 15% comparable earnings growth on a 6% operating revenue increase, driven by both Fleet Management Solutions and Supply Chain Solutions.”

He continued, “Our better-than-expected earnings performance in the quarter was primarily driven by Supply Chain Solutions. In Fleet Management Solutions, we saw continued strong growth in our lease fleet, which increased by 6,000 vehicles from a year ago, and grew 1,300 units from the first quarter. We realized our third consecutive quarter of record sales for our full service lease product, reflecting both customers new to outsourcing and further penetration within existing accounts.”

The company noted that “rental performance was also strong, driven by both higher demand and pricing, particularly in the U.S., which saw revenue growth of 13%.”

Category: General Update