Ryder Re-Brands Dedicated Segment - Analyst Blog

By
A A A

One of the leading providers of integrated logistics and transportation solutions, Ryder System Inc. ( R ) has is re-launched its Dedicated Contract Carriage segment. The segment will now be known as Ryder Dedicated.

Dedicated Contract Carriage accounted for approximately 10% of Ryder's business. The business provided equipment, maintenance and administrative services of a full service lease with drivers and additional services.

The additional services include route planning and scheduling, fleet sizing, safety, regulatory compliance, risk management and technology and communication systems support. It also includes on-board computers and other technical support. However, in 2012, the segment was merged with Ryder's Supply Chain Solutions following a restructuring of the internal reporting system.

In addition to re-branding, Ryder has complemented its Dedicated business with Transportation Management services. This new integrated solution will help reduce empty miles and lower transportation expenditures for customers.

Apart from segmental restructuring, the company is taking several other strategic developments under its wings. Ryder continues to invest in commercial rental and leased vehicles. In addition, the company also invests in maintenance technology as well as sales and information technology.

However, we remain concerned about the challenging economic environment surrounding its operations. Further, heavy capital expenditures, tighter truckload capacity and competition are expected to create significant headwinds for the company.

The stock retains a Zacks Rank #2 (Buy).

Other Stocks

Among the other related companies, we believe TAL International Group, Inc. ( TAL ), American Railcar Industries, Inc. ( ARII ) with a Zacks Rank #1 (Strong Buy) and Air Lease Corporation ( AL ) with a Zacks Rank #2 (Buy) are worth considering.  



AIR LEASE CORP (AL): Free Stock Analysis Report

AMER RAILCAR (ARII): Free Stock Analysis Report

RYDER SYS (R): Free Stock Analysis Report

TAL INTL GRP (TAL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AL , ARII , R , TAL

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
100%
100%
100%

Most Active by Volume

86,627,350
  • $61.80 ▼ 3.33%
58,636,005
  • $15.44 ▼ 1.03%
43,254,709
  • $64.8725 ▼ 0.15%
39,355,269
  • $3.38 ▲ 0.90%
39,064,711
  • $4.29 ▲ 1.42%
38,037,134
  • $95.035 ▼ 0.37%
36,100,193
  • $94.66 ▼ 0.32%
32,857,379
  • $26.20 ▼ 0.46%
As of 7/10/2014, 04:04 PM