Ryder Reports Fourth Quarter and Full-Year 2006 Results and 2007 Forecast
MIAMI – Ryder System, Inc. reported that earnings per diluted share (EPS) from continuing operations were $1.08 for the three-month period ended Dec. 31, 2006, up 16 percent from EPS of $0.93 in the year-earlier period. EPS in the fourth quarter of 2006 included net restructuring and other charges of $0.01. Earnings from continuing operations were $65.8 million, up 11 percent from $59.5 million in the year-earlier period.Revenue for the fourth quarter of 2006 was $1.59 billion, up 3 percent from $1.54 billion in the comparable period last year. Operating revenue (revenue excluding fuel and subcontracted transportation) was $1.15 billion, up 6 percent compared with $1.09 billion in the year-earlier period. Fleet Management Solutions (FMS) business segment revenue decreased 1 percent, due to lower fuel services and commercial rental revenue, which offset strong contractual revenue growth of 5 percent for the quarter. Supply Chain Solutions (SCS) business segment revenue grew 13 percent, driven by new and expanded business in all industry groups. Revenue for the full-year 2006 was $6.31 billion, up 10 percent from $5.74 billion in the comparable period of 2005. Operating revenue of $4.45 billion was up 6 percent from $4.21 billion in the same period of 2005. Ryder’s full-year 2006 earnings from continuing operations were $249.0 million compared with $227.6 million in the year-earlier period. EPS from continuing operations were $4.04 for 2006, up 14 percent compared with $3.53 for the same period of 2005.Full-year 2006 comparable earnings from continuing operations were $245.9 million, up 12 percent from $220.0 million in 2005. Excluding the income tax benefits in both years, and the third-quarter pension charge in 2006, comparable full-year 2006 EPS from continuing operations of $3.99 were up 17 percent from $3.41 in 2005.In the Fleet Management Solutions (FMS) business segment, revenue in the fourth quarter of 2006 was $1.01 billion, down 1 percent compared with the year-earlier period. Fuel services revenue for the fourth quarter of 2006 decreased 10 percent compared with the same period in 2005. Full service lease revenue for the fourth quarter of 2006 was up 5 percent from the year-earlier period reflecting growth in all geographic markets. In the quarter, contract maintenance revenue increased 16 percent due to continuing positive sales activity. Commercial rental revenue decreased 7 percent compared with the year-earlier period, reflecting lower utilization and pricing due to softer market demand conditions.