Ryder System, Inc.
), has unveiled a new transportation and logistics solution
dedicated to the energy sector, in particular oil and gas. The
new solution includes services Dedicated Fleet, Transportation
Management and fleet Leasing and Rental.We expect Ryder's new
solution to be well received in the present market scenario
ofrising gasoline supplies.
Through Ryder's new offering, the company aims to improve
transportation of equipment to job sites, simplify supply chain,
expedite shipments and ensure safety of transportation across
oilfields and offshore locations. Further, customers are expected
to save premium shipments cost as the shipment solution would
provide 30% reduction in fleet equipment cost, 50% lower pickup
and delivery delays, and 20% growth in load efficiency.
Ryder System continues to benefit from organic growth across
its business line. Strong market demand with tighter
transportation markets, particularly for trucks, has enabled the
company to realize higher pricing. The company expects improved
offerings in contractual product lines in the FMS segment with a
newer lease fleet and various maintenance initiatives to improve
2013 earnings. Organic growth in Full Service Lease along with
improved volumes in new business and supply chain are expected to
aid the company in generating high revenues in the coming
In addition, increase in used vehicle sales will remain a
continuing trend, with better pricing aiding growth.
Additionally, Ryder is targeting emerging markets for
fuel-efficient vehicles under projects like SANBAG (San
Bernardino Associated Governments). In the coming days, we expect
the demand for such vehicles to rise providing potential market
opportunity for the company. In Mar 2013, the company entered its
first-ever full-service lease agreement for providing 23
compressed natural gas tractors to Louisiana-based Eagle
Distributing of Shreveport, Inc.
Ryder currently holds a Zacks Rank #3 (Hold).
Other stocks worth investing in this sector include
Westinghouse Air Brake Technologies Corporation
American Railcar Industries, Inc.
Trinity Industries Inc.
). All these three companies hold a Zacks Rank #2 (Buy).
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