The Car and Truck Fleet and Leasing Management Magazine

Ryder Reports Full-Year 2004 Revenues

February 8, 2005

MIAMI — Ryder System, Inc., a transportation and supply chain management provider, announced net earnings on February 4 of $62.6 million for the three-month period ended December 31, 2004, up 59 percent compared with $39.4 million in the same period of 2003.Revenue for the full-year 2004 was $5.15 billion, up 7 percent from $4.80 billion in the comparable period of 2003. Ryder's full-year 2004 net earnings were $215.6 million compared with $131.4 million in the year-earlier period. EPS were $3.28 for 2004 compared with $2.06 for the same period of 2003. EPS for the full-year 2004 included a net tax benefit of $0.14 associated with recent developments in various tax matters, $0.23 of gains from the sale of the company's corporate headquarters complex and a $0.06 charge related to restructuring activities. EPS in the year-earlier period included $0.06 in non-cash charges associated with the cumulative effect of changes in accounting principles for variable interest entities and asset retirement obligations (primarily related to components of revenue earning equipment). For comparison purposes, excluding the noted net tax benefit and gains from the sale of the corporate headquarters complex, full-year 2004 earnings were $191.0 million, up 45 percent from $131.4 million in 2003; comparable full-year 2004 EPS of $2.91 were up 41 percent from $2.06 in 2003.In Ryder's Fleet Management Solutions (FMS) business segment, revenue in the fourth quarter of 2004 was $950.6 million, up 17 percent compared with $811.3 million in the year-earlier period. Dry revenue (revenue excluding fuel) in the fourth quarter of 2004 was $719.4 million, up 10 percent compared with $655.0 million in the year-earlier period. Fuel revenue for the fourth quarter of 2004 increased 48 percent compared with the same period in 2003 due primarily to higher fuel costs and related pricing increases. Revenue comparisons also benefited from acquisitions and favorable foreign currency exchange rates.Full service lease and programmed maintenance revenue for the fourth quarter of 2004 was 7-percent higher than the same period last year primarily from acquisitions. Ryder's fourth quarter 2004 commercial rental revenue grew 22 percent from the year-earlier period. Rental revenue improvement reflects higher pricing and increased activity levels.The FMS business segment's NBT increased to $89.5 million in the fourth quarter of 2004, up 62 percent compared with $55.1 million in the same period of 2003. This improvement was related primarily to lease growth from acquisitions, improved commercial rental results, higher vehicle sales gains from stronger volume and pricing, and lower pension costs. Business segment NBT as a percentage of dry revenue was 12.4 percent in the fourth quarter of 2004, up 400 basis points compared with 8.4 percent in the same quarter a year ago.In Ryder's Dedicated Contract Carriage (DCC) business segment, fourth quarter 2004 revenue totaled $128.5 million, down 1 percent compared with $130.4 million in the fourth quarter of 2003. Operating revenue (revenue excluding freight under management) in the fourth quarter of 2004 was $125.5 million, down 3 percent compared with $129.0 million in the year-earlier period. The revenue decrease was due to the non-renewal of certain customer contracts, partially offset by pricing increases associated with higher fuel costs.The DCC business segment's NBT in the fourth quarter of 2004 was $6.8 million compared with $11.5 million in the fourth quarter of 2003. Business segment NBT was impacted by the non-renewal of certain customer contracts, higher safety and insurance expenses, and increased driver-related costs. Business segment NBT as a percentage of operating revenue was 5.4 percent in the fourth quarter of 2004, compared with 8.9 percent in the year-earlier period.
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