Ryder System Inc.
), one of the world's largest providers of integrated logistics
and transportation solutions, reported mixed second quarter 2013
results. Quarterly adjusted earnings were $1.25 per share, which
surpassed the Zacks Consensus Estimate of $1.22 and escalated
15.0% from $1.09 in the year-ago quarter. The year-over-year
growth was driven by better performances across lease, commercial
rental and supply chain units.
The company registered revenues of $1,604 million in the second
quarter, missing the Zacks Consensus Estimate of $1,611 million.
Comparing year over year, revenues improved 3.0% from $1,564
Operating revenue (total revenue less Fleet Management Solutions
fuel and all subcontracted transportation) increased 4% year over
year to $1,313 million, supported by full service lease growth
plus expansion of business in the Supply Chain Solutions segment.
Fleet Management Solutions:
Total revenue increased 2% year over year to $1,121 million in
the second quarter buoyed by higher Contract-related maintenance
and Full Service lease revenues that increased 12% and 4%,
respectively. Operating revenue for the segment moved up 3% year
over year to $853 million.
Supply Chain Solutions:
The segment includes operational activities of the company's
Dedicated Contract Carriage business. Total revenue was $597
million, up 5% from the year-ago period. Operating revenue
(excluding subcontracted transportation) grew 6% year over year
to $515 million. The growth was primarily backed by higher new
Liquidity and Capital Expenditure
Ryder System ended the reported quarter with cash and cash
equivalents of $73 million compared with $66 million at year-end
2012. The company had long-term debt of $3,656 million,
representing debt-to-equity ratio of 253%. Cash from operations
was $564 million, while net capital expenditure amounted to $760
For 2013, Ryder revised its earnings estimate to $4.75-$4.85 per
share from $4.70-$4.85 guided previously. For the third quarter,
the company estimates earnings at $1.41 to $1.46 per share.
Ryder System continues to benefit from favorable industry
fundamentals along with improved average fleet age, prospects in
rental business and better financials. The company also targets
capturing more market share by deploying a fuel-efficient fleet
and enhanced services.
Despite the positives, the company faces certain headwinds that
may limit its near-term growth potential. These include unstable
economic conditions, heavy capital expenditures, stiff
competition and federal regulations.
Ryder System operates with the likes of
American Railcar Industries Inc.
FLY Leasing Ltd
The Greenbrier Companies Inc.
). The stock presently holds a Zacks Rank #4 (Sell).
AMER RAILCAR (ARII): Free Stock Analysis
FLY LEASING LTD (FLY): Free Stock Analysis
GREENBRIER COS (GBX): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
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