Ryder System Inc.
), one of the world's largest providers of integrated logistics
and transportation solutions, reported stellar fourth quarter and
full-year 2012 results. The outperformance was backed by strong
contributions from all business units along with greater number
of used vehicle sales plus lower selling and administrative
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Quarterly adjusted earnings were $1.17, which surpassed the Zacks
Consensus Estimate of $1.10 and increased 21% from 97 cents in
the year-ago quarter.
The company registered revenues of 1,583.5 million in the fourth
quarter, beating the Zacks Consensus Estimate of $1,562 million.
Comparing year over year, the results improved 3% from $1,541.1
Operating revenue (total revenue less Fleet Management Solutions
fuel and all subcontracted transportation) increased 4% year over
year to $1,287.6 million, driven by better full service lease
contracts plus higher volumes.
For full-year 2012, Ryder witnessed earnings of $4.04 per share
(beating our projection by 2% and increasing 16% year over year),
on revenues of $6,257.0 million (up 3% from the prior year).
Fleet Management Solutions:
Total revenue increased 4% year over year to $1,117.7 million in
the fourth quarter. The growth was based on higher Contractual
revenues and other revenues that increased 5% and 14%,
respectively. The growth in Contractual revenues was backed by
increased full service lease. Operating revenue for the segment
moved up 4% year over year to $849.5 million.
Supply Chain Solutions:
The segment includes operational activities of the company's
Dedicated Contract Carriage business. Total revenue was $575.3
million in the fourth quarter, up 2% from the year-ago period.
Operating revenue (excluding subcontracted transportation) also
grew 4% year over year to $489.1 million. The year-over-year
growth was primarily based on higher volumes in automotive and
dedicated contract carriage.
Liquidity and Cash Flow
Ryder System ended 2012 with cash and cash equivalents of $66.4
million compared with $104.6 at year-end 2011. The company had
long-term debt (including current portion) of $3,820.8 million,
representing debt-to-capitalization ratio of 72.2%. Cash from
operations in 2012 was $1,134.1 million, while net capital
expenditure amounted to $1,617.8 million.
Management expects first quarter 2013 earnings in the range of 75
cents to 80 cents share, 9% to 16% higher than the first-quarter
2012 result. For 2013, Ryder expects earnings in the range of
$4.70 to $4.85 per share, reflecting year-over-year growth of 7%
Among other related companies,
United Parcel Service Inc.
) has released its fourth quarter results today, while
) is expected to release the same on Mar 20.
A stock in the transportation and supply chain industry worth a
), which has a Zacks Rank #1 (Strong Buy).
Ryder currently holds a Zacks Rank #2, implying a Buy rating. We
believe that the company continues to benefit from fleet
management services and used vehicle sales. In addition,
strategic acquisitions and increased investments on vehicles
provide long-term growth opportunities for the stock.