Ryder's 2002 income up despite revenue drop

Feb. 11, 2003
Ryder System Inc. said its net income rose to $93.7 million in 2002 after taking several restructuring charges throughout the year, compared to net income of $18.7 million in 2001. The Miami-based company added that its income rose despite a nearly 5% drop in revenue last year to $4.78 billion, down from revenues of $5.01 billion in 2001. The slow economy contributed to a reduction in transportation
Ryder System Inc. said its net income rose to $93.7 million in 2002 after taking several restructuring charges throughout the year, compared to net income of $18.7 million in 2001.

The Miami-based company added that its income rose despite a nearly 5% drop in revenue last year to $4.78 billion, down from revenues of $5.01 billion in 2001.

The slow economy contributed to a reduction in transportation miles for the company's dedicated contract carriage operation and continued weak leasing demand, according to president & CEO Gregory Swienton.

However, commercial rental revenue for the fourth quarter grew 6% compared with the same period in 2001, marking the first rental revenue improvement in 10 quarters, he said.

The company noted that it also recorded a non-cash equity charge of $227.6 million at the end of last year to reflect the under-funded status of its U.S. pension plan. That charge resulted mainly from recent declines in the market value of equity securities coupled with declines in long-term interest rates, the company said.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

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