Ryder has reported its financial results for Q4 2021. Total revenues were up 17% year-on-year (y-o-y) to $2.6bn and operating revenues were up 14% to $2.1bn, both reflecting revenue growth in all business segments.
The company has also reported its FY2021 results, recording revenues up 15% y-o-y to $9.6bn (2020: $8.4bn) and operating revenues up 11% y-o-y to $7.8bn (2020: $7.0bn). Earnings before Tax (EBT) totalled $692.6bn. Full-year 2021 net cash provided by operating activities from continuing operations totalled $2.2bn.
Fleet Management Solutions (FMS)
Fleet Management Solutions’ revenues totalled $1.5bn in Q4 2021 and were up 12% y-o-y. Operating revenues increased by 9% y-o-y to $1.3bn and EBT was up 323% to $255m. FMS total and operating revenue increased primarily due to higher rental revenue driven by strong demand and higher pricing. Revenues also increased thanks to higher fuel pricing.
FY2021 results in the FMS business segments saw revenues up 10% y-o-y to $5.7bn (2020: $5.2bn) and operating revenues up 8% y-o-y to $5.0bn (2020: $4.6bn). 2021 EBT was $663.1m.
Supply Chain Solutions (SCS)
Supply Chain Solutions’ revenues totalled $870m in Q4 2021 and were up 22% y-o-y, while operating revenues were up 21% year-on-year to $614m. SCS total revenue increased due to strong revenue growth in all industry verticals. SCS operating revenue increased primarily due to new business, increased volumes, and the Midwest Warehouse & Distribution System acquisition; however, the result was partially offset by the impact from supply chain disruptions in the automotive vertical, affecting EBT which was down 38% to $21m.
FY2021 results in the SCS business segments saw revenues up 24% y-o-y to $3.1bn (2020: $2.5bn) and operating revenues up 18% y-o-y to $2.2bn (2020: $1.8bn). 2021 EBT was down 27% to $117.4m.
Dedicated Transportation Solutions (DTS)
Dedicated Transport Solutions revenues totalled $402m and were up 33% year-on-year, while operating revenues were up 26% to $219m, EBT was down 24% to $12m. DTS’s total and operating revenue increased due to new business, higher volumes, and increased pricing. Revenue growth from new business was driven by wins from competitors and private fleet conversions.
DTS EBT decreased primarily due to increased labour and insurance costs, partially offset by earnings from increased pricing and new business. DTS EBT as a percentage of DTS operating revenue is below the company’s long-term target of high single-digits for the fourth quarter and full year 2021, decreasing by 33% to $49.1m during the whole year.
During FY2021, revenues were up 19% y-o-y to $1.5bn (2020:$1.2bn) and operating revenues were up 14% y-o-y to $1.1bn (2020: $929.2m).
Commenting on the company’s results and outlook, Ryder Chairman and CEO Robert Sanchez said: “I am very pleased with record fourth-quarter and full-year comparable earnings driven by strong FMS results. We made significant progress on our strategy to create long-term shareholder value by improving returns in fleet management and accelerating growth in supply chain and dedicated. In supply chain and dedicated, we achieved record new contract wins that are expected to generate profitable growth in 2022 and beyond. We also recently completed two acquisitions that provide us enhanced capabilities in the fast-growing e-commerce and omnichannel fulfilment segment, as well as in multi-client warehousing. Although earnings in these segments were negatively impacted by labour shortages and wage increases as well as automotive supply chain disruptions, we are making progress with our customers to implement related price adjustments.
Looking at 2022, Ryder expects Net cash provided by operating activities from continuing operations forecast of $2.3bn; free cash flow forecast of $200m – $300m. Total revenue and operating revenue are also expected to increase by approximately 10%.
The company added that a strong balance sheet provides flexibility for potential acquisitions and share repurchases.
Source: Ryder
