One of the leading providers of integrated logistics and
Ryder System Inc.
) 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).
Among the other related companies, we believe
TAL International Group, Inc.
American Railcar Industries, Inc.
) with a Zacks Rank #1 (Strong Buy) and
Air Lease Corporation
) with a Zacks Rank #2 (Buy) are worth considering.
AIR LEASE CORP (AL): Free Stock Analysis
AMER RAILCAR (ARII): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
TAL INTL GRP (TAL): Free Stock Analysis
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