Ryder Reports First Quarter 2013 Results
Q1 Comparable EPS from Continuing Operations Up 17% to $0.81 Q1 EPS from Continuing Operations Up 16% to $0.79 Q1 Operating Revenue Grows 3%; Total Revenue Up 2% Full-Year 2013 Comparable EPS Forecast Reaffirmed at $4.70 to $4.85
Ryder System, Inc, a leader in transportation and supply chain management solutions, today reported earnings per diluted share from continuing operations for the three-month period ended March 31, 2013 were $0.79, compared with $0.68 in the year-earlier period. Earnings from continuing operations were $40.8 million, compared with $34.9 million in the year-earlier period. Earnings per diluted share and earnings from continuing operations in the first quarter of 2013 included net expense of $0.02 or $1.2 million related to non-operating pension costs, partially offset by a foreign currency translation benefit. Earnings per diluted share and earnings from continuing operations in the year-earlier quarter included net expense items of $0.01 or $0.6 million, respectively, related to non-operating pension costs and acquisition-related restructuring costs, partially offset by a tax benefit. Excluding these items in both periods, comparable earnings per diluted share from continuing operations for the first quarter of 2013 were $0.81, up 17% from $0.69 in the same period of 2012. Excluding these items, comparable earnings from continuing operations were $42.0 million in the first quarter, up 18% from $35.5 million in the year-earlier period. The increase in comparable earnings reflects improved performance in both business segments, Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS).
“Based on these factors, we are reaffirming our full-year 2013 earnings forecast of $4.70 to $4.85 per share. We have also established a second quarter earnings forecast of $1.20 to $1.24 per share.”
Total revenue for the first quarter of 2013 was $1.56 billion, up 2% from $1.54 billion in the same period last year. Operating revenue (revenue excluding FMS fuel and all subcontracted transportation), was $1.27 billion, up 3% compared with $1.23 billion in the year-earlier period, reflecting organic full service lease growth as well as increased volumes and new business in SCS. FMS total revenue increased 3% due primarily to higher operating revenue. FMS operating revenue increased 4% due to higher full service lease revenue. SCS total revenue increased 1%, driven by higher operating revenue, partially offset by lower subcontracted transportation revenue. SCS operating revenue increased 2% due to improved freight volumes and new business in the automotive sector and dedicated services, partially offset by lower volumes in the high-tech sector.
Net earnings per diluted share (including discontinued operations) for the three-month period ended March 31, 2013 were $0.77 versus $0.67 in the year-earlier period. Earnings per diluted share from discontinued operations (previously announced in 2009) totaled a loss of $0.02 in the first quarter of 2013, compared with a loss of $0.01 in the same period of the prior year. Net earnings for the first quarter of 2013 were $39.9 million versus $34.3 million in the year-earlier period.
Commenting on the Company’s first quarter 2013 performance, Ryder President and CEO Robert Sanchez said, “We delivered strong earnings growth with a 17% increase in comparable earnings per share on operating revenue growth of 3%. Our largest product line, full service lease, led our performance for the quarter, reflecting the benefits of both improved residual values as well as the strong vehicle replacement cycle underway with customers. Maintenance costs improved due to a younger lease fleet; however, maintenance costs did not decline as much as anticipated due to upfront costs on initiatives and other items. We experienced better-than-expected demand for commercial rental in North America with higher utilization on a smaller fleet, partially offset by lower demand in the U.K. Used vehicles sales results were in line with expectations, with continued strong pricing. SCS revenue and earnings improved and were also in line with expectations.”