Tags: ryder | profit | outlook | earnings

Ryder Raises Outlook After Profit Jumps 33%

Tuesday, 23 Oct 2012 11:05 AM

Truck-leasing company Ryder System Inc. said Tuesday that its third-quarter net income jumped 33 percent, boosted by cost cuts and fleet size adjustments.

Ryder also boosted its full-year profit prediction, and its shares rose nearly 6 percent in premarket trading.

The Miami-based company earned $75.1 million, or $1.47 per share, up from $56.5 million, or $1.10 per share, in the same quarter last year.

Excluding discontinued operations, the company posted a profit of $64.3 million, or $1.26 per share, for the recent quarter.

Revenue was flat at $1.57 billion. Lease and rental revenue rose 2.8 percent to $693.9 million, but was offset by drops in services and fuel services revenue.

Analysts, on average, expected a profit of $1.18 per share on $1.62 billion in revenue, according to a FactSet poll.

Ryder attributed its better-than-expected profit to improving contractual revenue growth and strong used vehicle sales, along with cost and rental fleet size adjustments that began earlier in the year.

Pre-tax earnings at the company's fleet management business jumped 21 percent to $94.3 million, helped by lower compensation-related expenses and growth in its lease fleet. Revenue at the business increased 1 percent to $1.12 billion.

Ryder said that despite the current economic weakness and uncertainty, it expects its profit to continue to grow this year and boosted its full-year earnings prediction to a range of $3.93 to $3.98 per share. The company previously predicted a range of $3.75 to $3.90 per share.

Analysts expect a 2012 profit of $3.82 per share.

The company also issued a fourth-quarter profit guidance of $1.06 to $1.11 per share, while analysts expect earnings of $1.06 per share.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
Truck-leasing company Ryder System said that its third-quarter net income jumped 33 percent, boosted by cost cuts and fleet size adjustments.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved