However, Ryder’s revenues for the quarter rose 7 percent year-over-year, driven by higher fuel costs passed through to customers.
Ryder System, Inc.’s earnings from continuing operations tumbled 32 percent year-over-year in the first quarter of 2017 to $38.3 million, according to the company’s latest financial statements.
The Miami-based commercial fleet management, dedicated transportation and supply chain solutions provider’s revenues for the quarter rose 7 percent from the corresponding period in 2016 to $1.75 billion, resulting from higher fuel costs passed through to customers, partially offset by negative impacts from foreign exchange.
“Ryder’s results came in at the bottom end of our forecast range, driven by weaker than expected rental demand, which is consistent with the soft freight environment,” Ryder Chairman and CEO Robert Sanchez said. “In addition, used vehicle sales results were slightly below plan, due to modestly lower pricing.”
Ryder’s Fleet Management Solutions segment’s revenues for the quarter ticked up 3 percent year-over-year to $1.13 billion. The segment’s lease revenue rose 5 percent year-over-year, resulting from a larger average fleet size and higher prices on replacement vehicles.
Meanwhile, the company’s Supply Chain Solutions segment saw revenues rise 19 percent from the first quarter of 2016 to $463 million, reflecting higher operating revenues and increased subcontracted transportation resulting from new business.
Ryder’s Dedicated Transportation Solutions segment’s revenues for the quarter jumped 9 percent year-over-year to $267 million, driven by new business, as well as the higher fuel costs passed through to customers.
Looking ahead, Ryder cut its full year earnings forecast due to lower expectations in its transactional business, primarily in commercial rental, Sanchez explained. The company now has a full year earnings per share forecast of $3.90 to $4.20, compared to a prior forecast of $4.78 to $5.08.
Ryder’s earnings drive downward in Q1
