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MIAMI, July 21 /PRNewswire/ -- Ryder System, Inc. (NYSE:R) today announced strong second
quarter performance, demonstrating continued improvements from the strategic change in direction
and restructuring efforts the company initiated in 1996.

``Our second quarter results continued to benefit from the changes we implemented last year,' said
Ryder Chairman, President and Chief Executive Officer M. Anthony Burns. ``Our earnings are on
track, the cost savings are where we expected them to be, and we are focused on profitable

Revenue in the second quarter of 1997 was $1.39 billion, compared with revenue of $1.43 billion
in the second quarter of 1996. Excluding second quarter 1996 revenue of $147 million from the
company's former consumer truck rental operations, sold in October 1996, revenue increased
8.9% year-over- year. Earnings increased to $50.0 million, or $0.64 per share, compared with
$31.6 million, or $0.39 per share, in the second quarter of 1996. Results for the second quarter of
1996 included pretax earnings of $12.4 million from the company's former consumer truck rental
operations and a pretax restructuring charge of $19.6 million ($12.4 million after tax) associated
with cost reduction programs.

For the first half of 1997, revenue totaled $2.73 billion, compared with revenue of $2.50 billion in
the first half of 1996 (excluding consumer truck rental revenue of $253 million). Earnings increased
to $83.7 million, or $1.07 per share, compared with earnings of $41.8 million, or $0.52 per share,
in the first half of 1996. Results for the first half of 1996 included a pretax loss of $2.6 million from
the company's former consumer truck rental operations, and a pretax restructuring charge of $19.6
million, which is described above.

Capital expenditures in the first half were $554 million (including acquisitions of $46 million),
compared with $770 million in the first half of 1996, a decrease of $216 million, or 28%.

EVA (Economic Value Added), which Ryder has adopted as an important measurement of
progress, turned positive during the first half and at mid year totaled $9.1 million, exceeding plan.


In the second quarter of 1997, total revenue of Ryder Integrated Logistics increased 29%,
operating revenue increased 12%, and pretax product line earnings rose 83% (67% excluding the
1996 restructuring charge) compared with the same period of 1996, in response to operational
improvements and cost controls. Pretax product line earnings as a percentage of operating revenue
were 6.0% versus 3.7% (4.0% excluding the 1996 restructuring charge) in the second quarter of
last year. During the quarter, the company continued to focus on the composition of the customer
base and to emphasize higher margin opportunities.

``RIL continues to grow, and our second quarter profits were above our target,' Burns said. ``We
continue to be selective and disciplined with our contracts and to work toward improved pricing
and margins. In addition, we are excited about our relationship with Andersen Consulting and IBM
Global Services, and we expect this relationship to rapidly enhance our logistics capabilities.'

In Ryder Transportation Services, revenue from truck leasing increased modestly. While the smaller
fleet size caused total revenue from commercial truck rental to decrease, the trends of higher
productivity of the rental fleet, higher per-unit revenue and stronger pricing continued. RTS's pretax
earnings increased 64% (31% excluding the 1996 restructuring charge), primarily as a result of
improvements and cost reductions implemented in 1996; for example, employee and facility costs in
the second quarter of 1997 decreased $19 million compared with the second quarter of 1996.

Pretax earnings as a percentage of dry revenue (revenue excluding fuel) were 9.8% in the second
quarter, compared with 7.4% in the second quarter last year, excluding the 1996 restructuring

Ryder Public Transportation Services revenue increased 21% in the second quarter, and pretax
product line earnings grew 27% (20% excluding the 1996 restructuring charge), compared with the
same period of 1996. As in the first quarter, the division's strong performance was bolstered by the
acquisitions of Larson Transportation Services and School Bus Services, as well as continued
growth of business with existing customers. During the quarter, Ryder/ATE began implementation
of a contract to manage the New York City Transit Authority's paratransit system, one of the
largest such projects in the country. In addition, RPTS was awarded a contract with the public
school system in Madison County, Mississippi, bringing to 24 the total number of states in which
RPTS provides student transportation services.

``RPTS is performing strongly and, as the New York City and Madison County contracts
demonstrate, we continue to see a growing interest in transportation outsourcing in existing and new
markets,' Burns commented.

During the second quarter, international operations were just below break- even, with a $2.7 million
improvement in pretax earnings over last year (a $1.7 million improvement excluding the 1996
restructuring charge). Argentina, Germany and Mexico continued their profitable operations, and
Brazil reported a profit. In the United Kingdom, pretax earnings of Ryder Plc increased 54% over
last year's second quarter.

``We are pleased with the continued improvement in our international operations,' Burns said.
``The British Airways contract, which leverages our maintenance strengths and does not require
major asset investments, contributed positively to second quarter earnings and is illustrative of the
breadth of our global logistics capabilities.'

As previously announced, in another important step toward reducing cyclicality, increasing strategic
focus and improving returns, the company has agreed to sell Ryder Automotive

Carrier Services, Inc. to Allied Holdings, Inc. (Nasdaq:HAUL) for approximately $114.5 million in
cash and the assumption of liabilities. The period for anti-trust review under the Hart-Scott-Rodino
Act has expired without further action by U.S. Government regulatory authorities, and the proposed
sale is now contingent upon regulatory approval from the Canadian Government and finalization of a
definitive agreement. Second quarter revenue for Ryder Automotive Carrier Services was $163.1
million, compared with $160.5 million in last year's second quarter, and performance continued to
improve as the cost-cutting, restructuring and utilization improvements made in 1996 continued to
show results.


Commenting on the outlook for the remainder of 1997, Burns said, ``We are very pleased to report
solid second quarter results, which contributed to a strong first half. Our new operating model,
which contains three high- quality, profitable businesses in growing markets, is less cyclical and less
capital intensive. With the new composition of our business, the second and fourth quarters will
typically be Ryder's strongest. We expect to see continued positive results, and we are on track for
the rest of the year.'

Ryder provides high-quality logistics and transportation solutions throughout the United States and
in Canada, the United Kingdom, Germany, Poland, The Netherlands, Mexico, Brazil and
Argentina. Revenue in the 12 months ended June 30, 1997 was $5.5 billion. Assets at June 30,
1997 were $5.6 billion. Ryder's stock is a component of the Dow Jones Transportation Average
and the Standard & Poor's 500 Index.
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