Ryder posts double-digit revenue growth in Q1 2019

Ryder

Ryder has reported a 15% growth in revenues for the first quarter of 2018 compared to the year-earlier period, bringing them to $2.18bn. This was driven by growth in all business segments, reflecting the continued outsourcing trends. Operating revenue increased by 14%, totalling $1.76bn.

In the Fleet Management Solutions (FMS) business segment, total revenue was $1.35bn, up 9% compared with $1.24bn in the year-earlier period. Ryder ChoiceLease revenue, the company’s largest product line, increased 8% reflecting a larger average-fleet size and higher prices on replacement vehicles. The lease fleet grew organically by a record 4,200 vehicles in the quarter, with 40% of the growth coming from customers new to outsourcing. FMS operating revenue was $1.14bn, up 10% from the year-earlier period.

In the Dedicated Transportation Solutions (DTS) business segment, total revenue was up 17% to $350m and DTS operating revenue was up 17% to $236m compared with the year-earlier period. The Supply Chain Solutions (SCS) business segment saw total revenue increase of 28% to $636m and SCS operating revenue was up 25% to $477m. The increase in both DTS and SCS total and operating revenue growth reflects revenue growth and stronger operating performance.

Robert Sanchez, Ryder Chairman and CEO added, “Turning to our longer-term strategic initiatives, we’re excited by the positive results we saw from our Atlanta pilot of COOP by Ryder and have expanded the platform to South Florida. COOP is the first and only asset sharing platform of its kind for commercial vehicles, which enables fleet owners to generate revenue from their underutilized vehicles and provides an asset-light earnings source for Ryder.”

Source: Ryder