One of the leading providers of integrated logistics and
Ryder System Inc.
) recently released its 2011 Corporate Sustainability Report. The
company's sustainability report underpins policies that prioritize
providing efficient transportation solutions to address complex
logistic requirements of various companies.
The report provides detailed information about the company's
steps toward improving its business operations as well as efforts
to evolve as an environmental friendly transportation provider. It
outlines Ryder's move toward maintaining high standards for
corporate governance, supply chains solutions and investments in
innovative technology for environmental protection.
In the report, the company also disclosed its plans for
deploying a fleet of 240 natural gas vehicles and building natural
gas vehicle maintenance infrastructure in California, Arizona, and
Michigan. Ryder is targeting emerging markets for fuel-efficient
vehicles under projects like SANBAG (San Bernardino Associated
Governments) and alliance with U.S.-based publishing and logistic
company Source Interlink to provide natural gas vehicles. This is
consistent with its Flex-to-Green lease program that promotes
utilization of alternative fuel vehicles to its customers.
We believe that the broad-based report will provide the
company's investors as well as other related parties with an
in-depth knowledge about its on-going operations and future
However, we remain concerned about the challenging economic
environment surrounding its operations despite its strong
performance. Further, heavy capital expenditures, a distressed cash
position, lower demand on tighter truckload market and competition
from the likes of
AmeraMex International, Inc.
) are also expected to create significant headwinds for the
Currently, we have a long-term Neutral recommendation on Ryder
System. For the short term (1-3 months), the stock retains a Zacks
#3 Rank (Hold).
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RYDER SYS (R): Free Stock Analysis Report
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