Ryder System Inc. on Wednesday, July 27, said net earnings for the three-month period ended June 30 were $40 million compared to $29.8 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, the benefit of acquisitions and growth in supply chain business. Total revenue was $1.51 billion, up 18 percent from $1.29 billion. Operating revenue (revenue excluding Fleet Management Solutions fuel and all subcontracted transportation) was $1.19 billion, up 15 percent compared with $1.04 billion.
Revenue for the six months ended June 30 was $2.94 billion, up 17 percent from $2.51 billion in the same period of 2010. Operating revenue (revenue excluding FMS fuel and all subcontracted transportation) was $2.32 billion, up 15 percent from $2.02 billion. Net earnings, including discontinued operations, were $65.2 million compared with $42.2 million.
“Although the economic environment remains challenging and inconsistent, we have been very successful in taking advantage of market opportunities to deliver second-quarter and first-half earnings that exceeded our plan,” said Greg Swienton, chairman and chief executive officer. “In Fleet Management Solutions, our commercial rental and used vehicle sales continued to perform extremely well, and we saw improvement in full-service lease retention and new sales.”
Improved FMS performance was offset partially by higher running costs on a relatively older lease fleet, Swienton said. “In Supply Chain Solutions, we benefited from improved volumes across all of our targeted industry sectors, and new business wins,” he said. “In addition to our organic growth, all of our business segments have benefited from the strong performance of acquisitions, including last month’s Hill Hire acquisition as well as Total Logistic Control.”