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Ryder System Inc. reported net income rose and revenue dipped in the third quarter, as it noted used vehicles sales set a record.
Net income for the period ended Sept. 30 reached $35.8 million, or 68 cents per diluted share, compared with a net loss of $91.5 million, or a loss of $1.75 per share, a year earlier.
Revenue dipped 3% to $2.15 billion compared with $2.22 billion a year earlier.
“In the third quarter, we saw improvement in the areas of our business most directly impacted by the pandemic,” Ryder Chairman and CEO Robert Sanchez said in a release. “An improved freight environment contributed to the stabilization of used vehicle and rental market conditions in the quarter. Strong automotive production activity benefited our supply chain automotive business.”
Revenue in the Supply Chain Solutions unit rose 11% to $685 million from $618 million a year earlier, according to the Miami-based company.
“In our supply chain business, automotive revenue exceeded pre-COVID levels during the quarter, primarily reflecting higher automotive production support activity following shutdowns earlier this year,” Sanchez said.
The supply chain business also is benefiting from accelerating trends in areas such as last-mile delivery of big and bulky goods and e-commerce fulfillment, he said.
“Ryder Last Mile revenues were up nearly 30%, delivering returns in the quarter well above our overall target for SCS,” he said. “These results were driven by new business as well as higher volumes partially due to COVID-19. We recently expanded our e-fulfillment distribution network and deployed automation technology.”
Saluting the men and women of the trucking industry who kept America's essential goods flowing during the coronavirus pandemic.
With that unit, Ryder provides technologies and logistics engineers to help shipper customers deliver goods.
Revenue in its Fleet Management Solutions unit, its largest, fell 7% to $1.29 billion compared with $1.39 billion in the 2019 period. That primarily was due to a 16% decrease in commercial rental revenue resulting from lower demand, partially offset by higher pricing on lease vehicles.
The unit’s services include vehicle leasing, maintenance and fueling, to commercial rental and used vehicle sales.
Lease performance benefited from higher pricing and lower maintenance costs, Ryder reported.
“We realized gains on used vehicle sales from higher sequential pricing, and lowered our inventory from the second quarter, driven by record used vehicle sales volume,” Sanchez said.
At the same time, used vehicle sales amounted to a net loss of $12.9 million compared with net income of $22.7 million a year earlier.
Also, rental power fleet utilization in the quarter was 71% as compared with 56% in the second quarter and 74% in the prior year.
Also in the segment, fuel services revenue fell 30% to $138.9 million compared with $198.7 million a year earlier.
At its Dedicated Transportations Solutions unit, its smallest, revenue fell 17% to $299.7 million compared with $359.2 million a year earlier — due to nonrenewed business and lower volumes.
With that unit, Ryder combines its leasing and maintenance capability with its professional drivers to deliver freight for customers.
Ryder Supply Chain Solutions ranks No. 10 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It is No. 5 on the TT Top 50 list of the largest logistics companies in North America.
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