Ryder System, Inc. has reported results for the three months ended September 30, 2020. The company’s total revenue reached $2.2bn, down 3%, compared to the same quarter last year, attributed to lower fuel revenue. Operating revenue totalled $1.8bn, unchanged on last year, as higher revenues in supply chain solutions and lease were offset by lower revenues in commercial rental and dedicated transportation solutions.
In the Fleet Management Solutions (FMS) business segment, total revenue ($1.3bn) and operating revenue ($1.2bn) declined by 7% and 3%, respectively, primarily due to a 16% decrease in commercial rental revenue resulting from lower demand, partially offset by higher pricing on lease vehicles.
In the Supply Chain Solutions (SCS) business segment, total revenue grew by 11%, compared to Q3-19, to reach $685m. The segment’s operating revenue also increased too $492m, up 9% y-o-y. The reasons behind the increases are primarily due to new business, higher volumes, and increased pricing. Increased volumes were partly due to higher automotive production support following shutdowns earlier in the year, as well as COVID-19 related freight increases in the consumer packaged goods vertical and Ryder Last Mile.
In the Dedicated Transportation Solutions (DTS) business segment, total revenue fell by 17% to $300m. Operating revenue also declined by 6% to $234m. This is primarily due to non-renewed business and lower volumes.
In the first nine months of the year, total revenue is down by 7% to $6.2bn from $6.6bn in 2019. Operating revenue has also decreased by 3%, from $5.3bn to $5.2bn.
Commenting on the company’s third quarter results, response to the challenges of COVID-19, and the current business environment, Ryder Chairman and CEO Robert Sanchez said, “Over the last year, we’ve taken significant actions to address a historic downturn in the used vehicle market and the impacts from COVID-19 on our used vehicle sales, commercial rental, and automotive supply chain businesses. These actions include adjusting our vehicle residual values, reducing the size of our rental fleet, and lowering operating and overhead costs. Looking ahead to the fourth quarter, we anticipate returns in supply chain and dedicated to moderate, reflecting seasonality and lower COVID-related activity, and to be within their target ranges for the full year.”
Source: Ryder
