Ryder System on Tuesday, April 26, announced net earnings for the first quarter of 2011 ended March 31 were $25.1 million versus $12.4 million in the year-earlier period. The Miami-based company said the increase primarily reflects better organic performance in commercial rental and used vehicle sales, acquisitions and higher volumes in the Supply Chain Solutions business segment.
Total revenue was $1.43 billion, up 17 percent from $1.22. Operating revenue – revenue excluding Fleet Management Solutions fuel and all subcontracted transportation – was $1.13 billion, up 14 percent compared with $987.6 million, reflecting the benefit of acquisitions and organic growth.
FMS business segment total revenue increased 11 percent due primarily to higher fuel services and commercial rental revenues. FMS operating revenue increased 6 percent due primarily to higher commercial rental revenue. SCS business segment total and operating revenue both increased 36 percent due to an acquisition and higher freight volumes. Dedicated Contract Carriage business segment total revenue increased 16 percent, and operating revenue increased 15 percent, reflecting an acquisition and the pass-through of higher fuel costs.
“Ryder performed significantly better than expected in the first quarter, with continuing strong organic results in our used vehicle sales and commercial truck rental product lines, and from acquisitions which contributed earlier and stronger than anticipated,” said Greg Swienton, Ryder chairman and chief executive officer. “Our full-service lease fleet expanded for the first time in eight quarters, with the positive impact of recent acquisitions.”
Swienton says Ryder saw a number of key indicators that reflected stronger activity with its lease customers, including increases in miles driven per unit and reduced early terminations of customer lease agreements. “Our lease product line was, however, impacted by higher maintenance costs on an older fleet,” he said. “Our supply chain management business also demonstrated continued earnings improvement with revenue growth in all of our four targeted industry sectors. In addition to delivering exceptionally strong results for the quarter, we also began to make strategic investments in technology and sales and marketing to benefit future years.”