Ryder System Inc. said it earned $71.9 million in the fourth quarter compared with $65.8 million in the year-ago quarter, a 9 percent increase. Ryder also announced it will establish a national distribution center in Plainfield, Ind., for education company K12 Inc., creating up to 90 new jobs for Ryder by 2010.
Excluding a one-time tax benefit, Ryder earned $68.3 million in the fourth quarter, while revenue rose 5 percent to $1.67 billion from $1.59 billion in the prior-year period. For the full year, the company posted a profit of $253.9 million compared with $249 million in 2006. Revenue rose 4 percent to $6.57 billion. The company said improvements in its contractual business performance and lower operating costs offset lower volumes in its commercial rental business.
“We’re pleased that we were able to deliver earnings growth in a challenging transportation industry environment in 2007,” said Greg Swienton, chairman and chief executive officer. “Our financial performance through these tough conditions reflects the significant improvements we’ve made to our business mix, processes and business controls since the last market downturn. We increased both earnings and contractual revenue in 2007, while at the same time taking the necessary steps to position the size and mix of the transactional rental fleet to meet the market demand we anticipate in the coming year.”
Ryder will manage the distribution and reclamation of K12 Inc.’s education materials from its distribution center located adjacent to the Indianapolis International Airport at the Plainfield Business Center at Airwest. “Partnerships with great global publicly traded companies like Ryder continue to energize our economy,” says Gov. Mitch Daniels.
Ryder will begin hiring logistics managers, supervisors and material handlers in 2008 as the company begins managing the supply chain and distribution network K12 Inc., a technology-based learning company that offers curriculum and online educational services to students in kindergarten through 12th grade. The company currently provides curriculum for more than 39,500 students and 700 teachers around the world.
“Ryder has had a strong presence in the Indianapolis area since 1991, and it has proven to be a superior location with a strong employee base and infrastructure, which has enabled us to provide supply chain services to large well-known companies,” says Tom Jones, senior vice president and general manager of supply chain solutions for Miami-based Ryder. “We are pleased to further strengthen our presence and appreciate the hard work and effective collaboration between business and government. We look forward to partnering with a dynamic company such as K12 and being able to support them in their explosive growth.”
The Indiana Economic Development Corporation offered Ryder up to $135,000 in performance-based tax credits and up to $4,000 in training grants based on the company’s job creation plans. The Town of Plainfield will provide the company with property tax abatement.
