Ryder System today, Oct. 24, reported third-quarter net earnings were $65.5 million, compared with $65.3 million in the year-earlier period. Earnings in the current period included a net after-tax charge of $1.7 million for restructuring costs partially offset by a gain on sale of property. Earnings in the year-earlier period included a one-time, non-cash after-tax charge of $3.5 million to adjust the accounting for certain pension costs.
Excluding the restructuring and other items from both periods, comparable earnings of $67.2 million were down 2 percent from $68.8 million in the year-earlier period.
Revenue for the third quarter of 2007 was $1.65 billion, up 2 percent from $1.62 billion in the same period last year, driven by contractual revenue growth in the Supply Chain Solutions and Fleet Management Solutions business segments. Operating revenue (revenue excluding fuel and subcontracted transportation) was $1.17 billion, up 3 percent compared with $1.14 billion in the year-earlier period. Both total and operating revenue benefited from favorable foreign exchange rates related to international operations.
Fleet Management Solutions business segment revenue declined 1 percent due to substantially lower commercial rental and fuel services revenue that offset contractual revenue growth of 7 percent. SCS business segment revenue grew 8 percent in the third quarter, driven by new and expanded business. Dedicated Contract Carriage business segment revenue decreased 2 percent compared with the same period in the prior year driven by lower volumes of managed subcontracted transportation and nonrenewal of customer contracts.
“We are taking appropriate steps to manage our fleet and organizational resources in line with decreased demand in the commercial rental market and increased used truck inventories,” said Greg Swienton, chairman and chief executive officer of Miami-based Ryder. “We continue to be focused on growing our contractual business. Our Fleet Management Solutions business segment results benefited from a 7 percent increase in full-service lease revenue and growth of 10 percent in contract maintenance revenue. Our Supply Chain Solutions business also showed growth of 9 percent, largely influenced by international operations.”
Revenue for the nine months ended Sept. 30 was $4.90 billion, up 4 percent from $4.71 billion in the same period of 2006. Operating revenue for the first nine months of 2007 was $3.45 billion, up 4 percent from $3.31 billion in the nine months of 2006. Ryder’s 2007 year-to-date net earnings were $181.9 million, compared with $183.1 million in the year-earlier period.
Earnings in the year-earlier period included an income tax benefit related to a change in Texas and Canada income tax laws. Comparable year-to-date net earnings were up 2 percent to $183.6 million, compared with the year-earlier period. Comparable year-to-date net earnings exclude the 2006 income tax benefit, the 2006 pension accounting charge and the third-quarter 2007 net charges.
