Acquisitions and internal growth in all business segments boosted fourth-quarter and year-end profit and revenue at supply chain giant Ryder System.
Net earnings increased 30 percent year-over-year in the quarter to $48.1 million, while the Miami-based company’s revenue climbed 17 percent to $1.54 billion. For the full year, net profit increased 44 percent to $169.8 million, while Ryder System’s total revenue rose by almost a billion dollars in 2011 to $6.01 billion.
The company benefited from shipper attempts to secure capacity by renting or leasing equipment, outsourcing logistics and dedicated contract carriage. Ryder System built on third-quarter momentum, when total sales increased 19 percent. Chairman and CEO Greg Swienton is optimistic about Ryder’s outlook.
“Even with an economic outlook that calls for only modest growth in 2012, we plan to deliver increased revenue and solid earnings leverage,” Swienton said.
Ryder’s largest business line, Fleet Management Services, increased earnings before tax 41 percent to $69.9 million in the last quarter, the company said.
The division’s fourth quarter revenue rose 13 percent to $1.07 billion, bolstered by four acquisitions in 2011. Commercial vehicle rental revenue was up 38 percent.
Increased demand and higher pricing helped boost commercial revenue, as Ryder’s rental fleet expanded to be 31 percent larger than a year ago in the quarter. Supply Chain Services earnings before tax were up 44 percent as well at $17.8 million in the fourth quarter. SCS revenue rose 26 percent to $408.7 million.
Ryder’s Dedicated Contract Carriage division increased earnings before tax 7 percent to $7 million, which was lower than the company expected. The dedicated fleet operation’s quarterly revenue increased 29 percent year over year to $156.6 million, thanks in part to an acquisition in January 2011.