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RYDER'S REVENUE AND EARNINGS FROM CONTINUING OPERATIONS HIGHER IN SECOND QUARTER

 MIAMI, July 22 /PRNewswire/ -- Revenue and earnings from continuing operations of Ryder System, Inc. (NYSE: R) increased in the second quarter of 1993, propelled by strong operating results in the company's Vehicle Leasing & Services Division, it was announced here today by Ryder System Chairman, President and Chief Executive Officer M. Anthony Burns.
 He said that for the company as a whole, revenue from continuing operations in the second quarter rose to $1.08 billion compared with revenue from continuing operations of $1.04 billion in the same quarter last year. Earnings from continuing operations in the second quarter were $40.7 million, or $0.51 per share, compared with earnings from continuing operations of $34.7 million, or $0.43 per share, a year earlier.
 On June 30, Ryder announced that it will spin off its aviation segment into a new, public company. In connection with the spin off, Ryder classified the aviation segment as a discontinued operation for financial reporting purposes. Aviation segment net earnings from operations were $6.5 million, or $0.09 per share, in the quarter, excluding a one-time charge, compared with comparable earnings of $2.8 million, or $0.04 per share, in the unusually weak second quarter last year.
 Second quarter results include a one-time charge of $169.4 million after tax to restructure the aviation business and to provide for costs associated with the spin off. As a result of the one-time charge, Ryder reported a net loss in the second quarter of $122.2 million, or $1.60 per share, compared with net earnings of $37.6 million, or $0.47 per share, in the second quarter of 1992.
 In the first half of 1993, Burns reported, revenue from continuing operations was $2.08 billion compared with comparable revenue of $1.99 billion in the first six months of 1992. Earnings from continuing operations in the six months were $60.7 million, or $0.74 per share, compared with comparable earnings of $47.0 million, or $0.56 per share, a year ago. After the one-time charge and the first quarter impact of a change in accounting, the company reported a net loss for the first six months of 1993 of $123.4 million, or $1.65 per share, compared with net earnings of $55.0 million, or $0.67 per share, in the same period last year.
 Operations
 Vehicle Leasing & Services Division pretax earnings of $65.5 million were 43 percent higher than they were a year earlier. Revenue growth was particularly strong in Ryder Dedicated Logistics and both commercial and consumer truck rental, Burns said. Revenue and pretax earnings of the company's bus operations grew, he added. Dedicated Logistics benefited from an increase in the number of customers it serves. The increase came as a result of the product line's intensified selling activities. Commercial and consumer truck rental both experienced higher demand, increased vehicle utilization and greater profitability. Full service truck leasing continued to grow at a modest rate. Burns noted that for the division as a whole, earnings benefited from lower interest rates and higher gains on the sale of used vehicles.
 Pretax earnings of the Automotive Carrier Division were lower compared with last year's unusually strong second quarter, Burns said. During the quarter, the division was affected by the continuation of lower production at some of the plants served by its carriers, shorter average length of haul and a current inability to recover certain cost increases.
 In Ryder's Aviation Services segment, the airline engine repair and overhaul business continued to be strong in the quarter, Burns commented, but demand for general aviation engine repair and overhaul services remained sluggish. The new-parts distribution business was also stronger than it was last year.
 Outlook
 Looking ahead, Burns said, "Cash flow from our continuing operations continues to be strong. Furthermore, upon completion of the Aviation spin off, we anticipate that our debt will be reduced by more than $400 million and debt as a percentage of equity will be lower.
 "As we look to the future, we see nothing but positive results from the spin off -- for both companies. It provides our shareholders with the choice of either continuing their investments in the highway transportation services and aviation services businesses or choosing between them. Moreover, each company will be able to focus on its own markets and opportunities, and each will be free to increase value for shareholders following its own strategies and approaches.
 "We sincerely believe that the spin off will benefit our customers and our stockholders."
 RYDER SYSTEM, INC. AND CONSOLIDATED SUBSIDIARIES
 REVENUE AND NET EARNINGS (LOSS)
 Periods ended June 30, 1993 and 1992
 (In thousands, except per share amounts)
 Second Quarter Six Months
 1993 1992(A) 1993 1992(A)
 Revenue $1,080,233 1,035,004 2,079,890 1,985,895
 Earnings from
 continuing
 operations $ 40,744 34,726 60,690 46,970
 Earnings (loss)
 from
 discontinued
 operations (B) (162,948) 2,849 (156,858) 8,014
 Earnings (loss)
 before
 cumulative
 effect of
 change in
 accounting (122,204) 37,575 (97,968) 54,984
 Cumulative
 effect of
 change in
 accounting (C) --- --- (25,433) ---
 Net earnings
 (loss) $(122,204) 37,575 (123,401) 54,984
 Earnings (loss)
 applicable to
 common shares $(123,232) 34,964 (127,018) 49,763
 Average common and
 common equivalent
 shares 77,158 74,832 77,109 74,623
 Earnings (loss)
 per common share:
 Continuing
 operations $ 0.51 0.43 0.74 0.56
 Discontinued
 operations (B) (2.11) 0.04 (2.06) 0.11
 Cumulative
 effect of
 change in
 accounting (C) --- --- (0.33) ---
 Net earnings
 (loss) (1.60) 0.47 (1.65) 0.67
 REVENUE AND EARNINGS BEFORE TAXES
 LINES OF BUSINESS
 Periods ended June 30, 1993 and 1992
 (In thousands)
 Second Quarter Six Months
 1993 1992(A) 1993 1992(A)
 Revenue:
 Vehicle Leasing &
 Services $909,648 855,527 1,753,900 1,651,507
 Automotive
 Carriers 174,661 183,920 334,277 342,848
 Intersegment (4,076) (4,443) (8,287) (8,460)
 $1,080,233 1,035,004 2,079,890 1,985,895
 Earnings from
 continuing operations
 before income
 taxes (D):
 Vehicle
 Leasing &
 Services $ 65,459 45,900 99,660 61,904
 Automotive
 Carriers 12,059 18,222 16,158 25,683
 Other (7,859) (4,876) (12,057) (6,742)
 $ 69,659 59,246 103,761 80,845
 (A) -- Certain amounts have been restated for discontinued operations.
 (B) -- The loss from discontinued operations for the second quarter of 1993 includes a one-time after tax charge of $169.4 million ($2.20 per common share) to restructure the aviation business and to provide for costs associated with the spin off. Net sales from discontinued operations were $288.3 million for the quarter compared with $292.2 million last year and were $565.3 million for the six months as compared to $579.8 million last year.
 (C) -- Effective Jan. 1, 1993, the company adopted Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," resulting in an after tax charge of $25.4 million ($0.33 per common share). The cumulative effect reflects the charge to establish a liability for the present value of expected future benefits attributed to employees' service rendered prior to the adoption date.
 (D) -- Excludes cumulative effect of change in accounting.
 -0- 7/22/93
 /NOTE TO EDITOR: Ryder System, Inc. is the parent of a group of companies which provide high-quality highway transportation services and aviation services. Revenue from continuing operations for the 12 months ended June 30, 1993 was $4.11 billion.
 Ryder's stock is component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index.
 CONTACT: Art Stone of Ryder System, Inc., 305-593-3180/
 (R)


CO: Ryder System, Inc. ST: Florida IN: TRN SU: ERN

RC-AW -- FL001 -- 4330 07/22/93 08:52 EDT
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Date:Jul 22, 1993
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