#Ryder writedown drivers
The Dedicated division provides leased trucks and drivers to dedicated customers, while Supply Chain Solutions provides logistics support and networks to its customers. Costs declined to $2.1 billion from $2.3 billion in the third quarter of last year. But a variety of expenses were lower, including the cost of leases. The shift in the company’s bottom line came despite the drop in revenues to $2.15 billion from $2.2 billion. In early trade, investors rewarded Ryder with a small decline in its stock price in the midst of a broad sell-off. Total revenue of $2.2 billion was more than the consensus forecast of $2.1 billion. Instead, its adjusted non-GAAP earnings came in at $1.21 per share. According to SeekingAlpha, Ryder was expected to report earnings per share of negative 32 cents per share. Earnings for Ryder’s other segments also rose, to $57.8 million from $34.6 million for Supply Chain Solutions and to $24.7 million from $18.5 million for Dedicated Transportation Solutions. Fleet Management includes the businesses Ryder is most known for: leasing commercial vehicles and then selling them.īut because of the earlier accounting changes, Fleet Management Solutions’ earnings before taxes rose to $16.2 million from a loss of $108.6 million in the third quarter of last year. The Fleet Management sector’s total revenue declined 7%, to $1.3 billion from $1.4 billion. The aggressive approach Ryder has taken toward writing down the value of its used vehicle fleet is paying off on the company’s bottom line, as evidenced by a big shift in net earnings for the third quarter.Įven as net income rose to $35.8 million from a loss of $91.5 million in the third quarter of last year, overall revenue was down.
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