Ryder System Inc.
), one of the world's largest providers of integrated logistics
and transportation solutions, reported fourth quarter 2013
adjusted earnings of $1.35 per share. The bottom line surpassed
the Zacks Consensus Estimate of $1.29 and escalated 7% from $1.26
in the year-ago quarter. Improved performance by Supply Chain
Solutions and Fleet Management Solutions segments were the main
For 2013, the company registered earnings of $4.88, up 11%
year over year.
The company registered revenues of $1,617.7 million in the
fourth quarter, up 2% year over year but below the Zacks
Consensus Estimate of $1,643 million. For the full year, Ryder
reported total revenue of $6.4 billion, up 3% year over year.
Operating revenues (total revenue less Fleet Management
Solutions fuel and all subcontracted transportation) increased 4%
year over year to $1,344.7 million thanks to business wins and
volume growth in Supply Chain Solutions as well as growth in full
service lease and commercial rental revenues. For 2013, operating
revenue was $5.3 billion, up 4% year over year.
Fleet Management Solutions
: Total revenue increased 2% year over year to $1.14 billion in
the fourth quarter buoyed by 6% growth in commercial rental
revenues. Operating revenues moved up 3% year over year to $875.7
Supply Chain Solutions
: Total revenue was $598.7 million, up 4% from the year-ago
period. Operating revenues (excluding subcontracted
transportation) grew 8% year over year to $525.9 million. The
growth was driven by higher volumes and business wins.
Liquidity and Capital Expenditure
Ryder System ended the year with cash and cash equivalents of
$61.6 million compared with $66.4 million at year-end 2012. The
company had long-term debt of $3,930 million, representing
leverage ratio of 221%. Cash from operations was $1.2 billion, up
8% year over year. Net capital expenditure amounted to $2.18
billion versus $2.16 billion in 2012.
For the first quarter of 2014, the company expects earnings in
the range of 83-88 cents per share, representing 2-9% growth year
over year. For 2014, Ryder expects earnings per share of $5.30 to
$5.45, up 9% to 12% from $4.88 per earned in 2013.
Full-year 2014 total revenue is expected at approximately $6.8
billion, up 5% year over year. Operating revenue (revenue
excluding FMS fuel and all subcontracted transportation) is
estimated at approximately $5.6 billion, up 6% year over year in
We believe the company's growth trajectory hinges on
improvement in lease fleet and used vehicle sale. Further, Ryder
is experiencing an improvement in fleet age, implying further
renewals and organic fleet growth. In addition, the company's
efforts in deploying a fuel-efficient fleet remain industry
leading and strengthen its foothold in the rapidly growing market
for environmentally friendly vehicles.
Despite these positives, the company faces certain headwinds
that may limit its near-term growth. These include unstable
economic conditions, heavy capital expenditures, stiff
competition and federal regulations.
Ryder System currently has a Zacks Rank #2 (Buy). Other stocks
to consider in this sector include
Trinity Industries Inc.
American Railcar Industries, Inc.
). While GATX and Trinity Industries boast a Zacks Rank #1
(Strong Buy), American Railcar holds a Zacks Rank #2
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