Ryder’s earnings dropped 30.1% in Q3, compared to the same period in the previous year. Revenues were up 7.2% and operating revenue grew 3.9%.
In its largest segment, Fleet Management Solutions (FMS), revenues grew 3.5% and operating revenue grew 2.8%. Rental and used vehicles sales performance was better than expected. Earnings before taxes were down 10.5% as maintenance spending normalized and depreciation expenses increased.
In Dedicated Transport Solutions (DTS), revenues were up 4.4% and operating revenue grew 0.7% due to new business increases. Earnings before taxes fell 21.6% due to higher insurance premiums and higher maintenance costs on certain older model year vehicles.
Ryder’s Supply Chain Solutions had strong revenue growth of 19.0% and operating revenue growth of 8.9%. This growth primarily reflected new business. However, like in other segments, earnings before taxes fell, this time 28.8%. Ryder said this was mainly due to the performance of two customer accounts.
Commenting on the Company’s third quarter results, Ryder Chairman and CEO Robert Sanchez said, “We performed in line with our expectations for the third quarter. Although earnings were down year-over-year, earnings comparisons improved from the second quarter of this year…Our overall earnings outlook for the fourth quarter remains on track with our prior expectations.”
In the first nine months of the year, revenues have grown 6.6%, with net earnings down 31.1%.
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