William B. Cassidy | Jul 27, 2011 1:56PM EDT
Ryder System’s net profit leaped 34.2 percent year-over-year to $40 million in the second quarter, as revenue climbed 18.1 percent to $1.5 billion in the second quarter.
The revenue growth was propelled by acquisitions, supply chain business and increased vehicle rentals and sales.
The company’s Supply Chain Solutions business raised revenue 26 percent, while its Fleet Management Solutions division reported a 14 percent increase in sales. Its Dedicated Contract Carriage unit increased revenue 22 percent from a year ago.
The company prospered from shipper attempts to secure truck capacity, whether by renting or leasing vehicles, contracting a dedicated fleet or using third parties.
“Although the economic environment remains challenging and inconsistent, we have been very successful in taking advantage of market opportunities,” said Greg Swienton, president and CEO of the $5.1 billion transportation company.
Those opportunities include acquisitions. Ryder acquired British truck lessor Hill Hire in June and U.S. logistics provider Total Logistics Control in January.
The Miami-based company closed on a $900 million credit agreement with its lenders in June to strengthen its long-term liquidity and fund expansion.
Ryder benefited from recent acquisitions in the second quarter, but also reported volume and revenue rising across all industry sectors, despite the impact of the natural disasters in Japan on its automotive business.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
