Ryder has reported its full-year results for 2020, showing total revenues were down by 5.7% to $8.4bn. Total revenues have fallen year-on-year for all four quarters as the company was negatively impacted by the COVID-19 pandemic affecting market conditions and its used vehicle sales, commercial rental, and automotive supply chain businesses.
During 2020, operating revenue decreased by 2.3% to $7.0bn. Though the company generated higher revenues in Supply Chain Solutions (SCS) linked to new business and higher volumes, this was largely offset by lower revenues in fleet management and dedicated businesses.
All three segments saw revenues decrease over the year. In the Fleet Management Solutions (FMS) business segment, total revenue was $5.2bn, down 7.2% from the previous year. FMS operating revenue was $4.6bn, down 3.0% y-o-y. In the SCS business segment, total revenue was down 0.3% to $2.5bn and operating revenue was down 0.5% to $1.9bn compared with 2019. In the Dedicated Transportation Solutions (DTS) business segment, total revenue was down 13.3% to $1.2 and operating revenue slightly increased to $929m compared with the year earlier.
The decrease in total revenues across all segments reflects COVID-19 related impacts such as a decrease in commercial rental revenue resulting from lower demand for FMS, reductions in the automotive sector for SCS and non-renewed business and lower volumes in the DTS segment.
Commenting on the company’s outlook, Ryder Chairman and CEO Robert Sanchez said, “While the 2021 market environment remains uncertain and may be impacted by developments related to COVID-19 and other factors, we expect improving economic conditions, continued secular trends that favour outsourcing, and progress on our strategic initiatives. Based on this outlook and an improved deal pipeline, we expect higher contractual sales activity. Operating revenue growth in SCS and DTS is expected to be within the high-single-digit target range, with FMS growth near the lower end of the mid-single-digit target range.”
Source: Ryder
