Miami-based Ryder System has stated that high demand for its fleet management services – from equipment leasing and maintenance outsourcing to vehicle disposal – helped boost its first quarter earnings by 18% to $41.5 million. Revenues were up 9% to $1.3 billion compared to the first quarter of 2004.
Ryder said revenue for its Fleet Management Solutions (FMS) unit went up 10% to $924.6 million in the first quarter, with leasing business increasing 3%, contract maintenance climbing 10%, and commercial rental growing 12%. As a result, FMS’ net income before taxes (NBT) jumped 28% to $70.9 million in the first quarter, compared to the same period last year, the company said.
By contrast, NBT from the company’s Supply Chain Solutions (SCS) division declined 10% even though revenues increased 8%. NBT from its Dedicated Contract Carriage (DCC) business dropped 13% as revenues stayed nearly flat with roughly 1% growth in the first quarter, Ryder noted.
However, Ryder continues to project earnings growth for the year, forecasting a 10-cent increase in earnings for 2005 to between $3.30 and $3.40 per share. For the second quarter of 2005, Ryder projects earnings to range between 83 and 86 cents per share.