Ryder Reports Record Third Quarter 2015 Results

Ryder System, Inc. (NYSE: R), a leader in commercial fleet management, dedicated transportation, and supply chain solutions, reported strong third quarter comparable earnings and revenue growth across all business segments.  

Highlights were as follows:

• Record Q3 Comparable EPS from Continuing Operations Up 7% to $1.74

• Record Q3 EPS from Continuing Operations of $1.70 Increase 8%

• Record Q3 Operating Revenue of $1.4 Billion Grows 6%

• Q3 Total Revenue Remains at $1.7 Billion, from Lower Fuel Costs Passed Through to Customers

Commenting on the Company’s third quarter performance, Ryder Chairman and CEO Robert Sanchez said, “In the third quarter, we delivered strong operating revenue growth across all three business segments. We also realized solid year-over-year earnings improvement, despite recently communicated growth-related maintenance challenges and less robust used vehicle sales conditions. We’ve made adjustments to add labor capacity within our maintenance organization, and based on the progress we’ve already made, we’re confident this growth-related challenge will be fully resolved by the end of October.

He added, “Rental performance in the U.S. was particularly strong, with a 12% increase in revenue. We officially launched our new on-demand maintenance product in the quarter and continue to expand sales efforts to respond to strong customer interest. Our business in both dedicated transportation and supply chain showed strong topline growth and performed generally in line with our expectations.”

In the Fleet Management Solutions  business segment, operating revenue (revenue excluding fuel) in the third quarter of 2015 was $988.4 million, up 6% (or 8% excluding foreign exchange) compared with the year-earlier period. Total revenue in the third quarter of 2015 was $1.2 billion, down 2%, as the operating revenue increase was more than offset by lower fuel costs passed through to customers.

Full service lease revenue increased 6% (or 8% excluding foreign exchange) due to fleet growth and higher prices on replacement vehicles. The number of full service lease vehicles (excluding U.K. trailers) increased by 7,400 from the year-earlier period and grew by 1,900 vehicles sequentially from the second quarter of 2015.

Commercial rental revenue grew 7% (or 9% excluding foreign exchange) reflecting increased demand and higher pricing in North America. Fuel services revenue decreased 34%, primarily reflecting lower fuel prices passed through to customers.

Category: General Update