Ryder Reports Second Quarter 2013 Results

Ryder has reports second quarter 2013 results, with highlights as follows:

• Q2 Comparable EPS from Continuing Operations Up 15% to $1.25
• Q2 EPS from Continuing Operations Up 31% to $1.19
• Q2 Operating Revenue Grows 4%; Total Revenue Up 3%
• Full-Year 2013 Comparable EPS Forecast Narrowed to $4.75 to $4.85

Ryder System, Inc. (NYSE: R), a leader in transportation and supply chain management solutions, today reported earnings per diluted share from continuing operations for the three-month period ended June 30, 2013 were $1.19, compared with $0.91 in the year-earlier period.

Earnings from continuing operations were $62.6 million, compared with $46.8 million in the year-earlier period. Earnings per diluted share and earnings from continuing operations in the second quarter of 2013 included non-operating pension costs of $0.06 or $2.9 million. Earnings per diluted share and earnings from continuing operations for the year-earlier period included expense of $0.18 or $9.2 million, respectively, related to non-operating pension costs and restructuring charges.

Excluding these items in both periods, comparable earnings per diluted share from continuing operations for the second quarter of 2013 were $1.25, up 15% from $1.09 in the same period of 2012. Excluding these items, comparable earnings from continuing operations were $65.5 million in the second quarter, up 17% from $56.0 million in the year-earlier period. The increase in comparable earnings reflects improved performance in both business segments, Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS).

“Based on these factors, we are narrowing our comparable full-year 2013 earnings forecast from a range of $4.70 to $4.85 per share, to a new range of $4.75 to $4.85 per share. We have also established a third quarter comparable earnings forecast of $1.41 to $1.46 per share.”
Total revenue for the second quarter of 2013 was $1.60 billion, up 3% from $1.56 billion in the same period last year. Operating revenue (revenue excluding FMS fuel and all subcontracted transportation), was $1.31 billion, up 4% compared with $1.27 billion in the year-earlier period, reflecting new business in SCS, as well as full service lease growth. FMS total revenue increased 2% due to higher operating revenue, partially offset by lower fuel services revenue. FMS operating revenue increased 3% due primarily to higher full service lease revenue. SCS total revenue increased 5%, driven by higher operating revenue, partially offset by lower subcontracted transportation revenue. SCS operating revenue increased 6% due primarily to new business, especially in dedicated services.

Commenting on the Company’s second quarter 2013 performance, Ryder Chairman and CEO Robert Sanchez said, “We delivered strong year-over-year results in the quarter, despite continuing uncertain economic conditions. The improvement was driven by higher performance in our lease, commercial rental and supply chain offerings.

“Strong performance in our full service lease product line continued to reflect the vehicle replacement cycle that is currently underway with customers, as well as the benefit of improved residual values. We continued to see solid demand for our commercial rental product in the U.S., partially offset by lower rental demand in the U.K. We also made progress on our maintenance initiatives, although we have not realized all of the anticipated benefits. Our used vehicle sales product line continued to perform in line with expectations, with historically strong pricing levels. In Supply Chain Solutions, we began to see growth from the strong sales performance that began in 2012, supported by favorable outsourcing trends, especially within our dedicated services offering.”

Tags: Ryder

Category: General Update