Ryder Reports Third Quarter 2012 Results

Ryder System, Inc. today reported earnings per diluted share from continuing operations of $1.26 for the three-month period ended September 30, 2012, up 15% from $1.10 in the year-earlier period.
 
Earnings from continuing operations were $64.3 million, up 13% from $56.9 million in the year-earlier period. Earnings per diluted share and earnings from continuing operations for the third quarter of 2012 included a charge from a tax law change of $0.02 or $0.9 million. Earnings per diluted share in the year-earlier period included a tax benefit of $0.01 or $0.6 million associated with acquisition-related transaction costs. Excluding these items, comparable earnings per diluted share from continuing operations for the third quarter of 2012 were $1.28, up 17% from $1.09 in the third quarter of 2011. Comparable earnings from continuing operations of $65.5 millionfor the third quarter of 2012 were up 16% from $56.4 million in the year-earlier period. The increase in comparable earnings reflects strong performance in the Fleet Management Solutions (FMS) business segment.
 
Total revenue for the third quarter of 2012 was $1.57 billion, unchanged from the same period last year. Operating revenue (revenue excluding FMS fuel and all subcontracted transportation) was $1.28 billion, up 2% compared with $1.26 billion in the year-earlier period reflecting organic full service lease growth. FMS business segment total revenue increased 1% due to higher operating revenue, partially offset by lower fuel costs passed through to customers. FMS operating revenue increased 3% due to higher full service lease revenue. In the Company’s Supply Chain Solutions (SCS) business segment, total revenue was unchanged as higher operating revenue offset lower subcontracted transportation. SCS operating revenue increased 2% largely reflecting higher fuel cost pass-throughs and both improved volumes and new business in the automotive industry.
 
Net earnings per diluted share (including discontinued operations) for the three-month period endedSeptember 30, 2012 were $1.47 versus $1.10 in the year-earlier period. Net earnings for the third quarter of 2012 were $75.1 million versus $56.5 million in the year-earlier period. Net earnings per diluted share and net earnings for the third quarter of 2012 included a tax benefit of $0.22 or $11.3 million in discontinued operations from the expiration of a statute of limitations.
 
Ryder Chairman and Chief Executive Officer 
Greg Swienton commented, “Despite the effects of a general economic slowdown and the reported negative impacts within the transportation industry, we were able to deliver better than expected results. This was driven by improving contractual revenue growth, strong used vehicle sales results, and also supported by the prompt cost and rental fleet size adjustments we began earlier this year. Our largest product line, full service lease, saw organic fleet growth again in the third quarter, reflecting increased vehicle replacement activity and new business. Maintenance costs were lower for the second consecutive quarter, reflecting the benefits of operational improvement initiatives and a declining fleet age. We had continuing strong volume in used vehicle sales, with better than expected pricing. Although rental demand was slightly lower than expected, our fleet-sizing actions resulted in improved utilization comparisons and higher pricing. Our Supply Chain Solutions segment continues to demonstrate strong year-over-year volume and earnings in our automotive-related business. However, this performance was partially offset by the general slowdown in the high tech sector, and the impact of crop failures on the consumer packaged goods industry. Overall, given the uncertain environment, we continue to be very pleased with the receptivity of the marketplace to Ryder’s value proposition and range of solutions.”