Ryder’s Q2 financial results showed 5.3% year-over-year growth in revenues to $1,793m. It produced EBT of $80.7m, down 30.9% in year-on-year comparisons. According to Ryder though, this beat the upper end of its forecast expectations, due to the strength of its Fleet Management Solutions (FMS) segment.
In the FMS segment, total revenue was $1,164 billion, up 1.1% from the year-earlier period. Lease revenue increased by over 2% reflecting a larger average fleet size. FMS EBT fell 38.8% to $68.1m. Ryder said this reflected lower used vehicles sales results, larger depreciation and higher maintenance costs on older vehicles.
The Dedicated Transportation Solutions (DTS) segment, showed revenue growth of 5.6% to $272.6m for the quarter, with results reflecting new business gained. EBT decreased by 10.3% to $14.8m, due to higher maintenance costs of older vehicles and higher insurance premiums.
Within the Supply Chain Solutions (SCS) segment, total revenues grew 17.1% to $471m, as a result of new business wins, higher volumes and higher prices. However, as with other segments, EBT fell. The 8.8% decrease to $25.9m was attributed to higher costs incurred during the start-up phase of some new accounts.
Commenting on the company’s short-term expectations, Ryder Chairman and CEO, Robert Sanchez, said, “Our overall earnings outlook for the second half remains on track with our prior expectations. Improved performance in FMS is anticipated to be offset by modestly lower performance in Supply Chain Solutions and Dedicated Transportation Solutions.”
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