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RYDER REPORTS STRONG THIRD QUARTER REVENUE AND PRETAX EARNINGS FROM CONTINUING OPERATIONS

 MIAMI, Oct. 21 /PRNewswire/ -- Revenue from continuing operations of Ryder System, Inc. (NYSE: R) in the third quarter was $1.04 billion, compared with $1.01 billion in the third quartf? 1992, it was announced here today by Ryder Chairman, President and Chief Executive Officer M. Anthony Burns. Pretax earnings from continuing operations rose to $56.7 million, Burns said, compared with $46.2 million in the same quarter last year. A third quarter tax adjustment of $9.4 million, required because of the recently enacted rise in federal income tax rates, reduced after tax earnings from continuing operations to $23.5 million, or $0.30 per share, compared with $27.4 million, or $0.33 per share, in the third quarter last year.
 Commenting on the quarter's results, Burns said, "To properly understand our third quarter this year requires an informed reading of our financial statements. You need to start with the $0.42 per share generated by our highway transportation services, add $0.06 from the discontinued aviation business, then subtract $0.12 for the impact of the change in federal income tax rates in order to arrive at net earnings per share for the quarter. The good news which emerges is that our highway transportation services -- particularly full service truck leasing and both commercial and consumer truck rental -- continued to perform well."
 In the first nine months of 1993, revenue from continuing operations rose to $3.12 billion compared with $2.99 billion in the same period of 1992. Pretax earnings from continuing operations in the first nine months were $160.4 million, compared with $127.0 million in the first nine months of 1992. After the income tax adjustment, a one-time charge related to the aviation spin off and the impact of a first-quarter change in accounting, the company reported a net loss for the first nine months of $95.6 million, or $1.28 per share, compared with net earnings of $94.1 million, or $1.15 per share in the same period last year.
 Operations
 The Vehicle Leasing & Services Division showed substantial growth in revenue and pretax earnings in the third quarter despite continued lackluster performance by the national economy, Burns reported. Rental margin per unit for both commercial and consumer truck rental rose significantly, and consumer truck rental, operating during its peak season, reported higher revenue in August than during any previous month in the product line's history. Full service truck leasing and Ryder Dedicated Logistics also performed well in the quarter, while bus operations were seasonally lower, though they are comfortably ahead of last year for the first nine months. Earnings for the division as a whole benefited from lower interest rates and higher gains on the sale of used vehicles. Lower vehicle liability insurance costs also benefited division earnings.
 Challenges continue in the Automotive Carrier Division. As a result of virtually no increase in the number of units hauled, shorter average length of haul and ongoing difficulty in raising rates, Burns said that the division's pretax earnings remained under pressure.
 Discontinued Operations
 Net after tax earnings from discontinued operations were $4.3 million, or $0.06 per share, in the third quarter, compared with $11.8 million, or $0.16 per share, in the same period last year, Burns said. Third quarter 1992 earnings included a gain of $6 million, or $0.08 per share, for the close out of the discontinued aircraft leasing business.
 While net sales from commercial engine overhaul was higher during the quarter, gross profit declined due to an unfavorable mix of engines serviced. In addition, net sales from parts distribution services declined, primarily due to steps taken as part of the restructuring plan to streamline this business. This decline was mitigated by a slight improvement in gross profit percentages. Third quarter 1993 earnings benefited from lower operating expenses for the aviation segment as a whole. In total, even with slightly lower third quarter earnings, earnings for the aviation business, excluding the one-time charge related to the aviation spin off, remain ahead of last year for the first nine months. (A separate table with detailed financial information for discontinued operations follows.)
 Outlook
 Looking ahead, Burns said, "The spin off of our aviation business is progressing according to plan, and we are confident that the dividend of the new aviation company's stock to Ryder stockholders will be declared before year end.
 "when the spin off is completed, both companies will be more focused, better prepared to serve our respective customers and to take advantage of opportunities in our respective markets. Our customers, our employees and our stockholders will all benefit from the change."
 RYDER SYSTEM, INC. AND CONSOLIDATED SUBSIDIARIES
 REVENUE AND NET EARNINGS (LOSS)
 Periods ended Sept. 30, 1993 and 1992
 (In thousands, except per share amounts)
 Third Quarter Nine Months
 1993 1992(E) 1993 1992(E)
 Revenue $1,043,495 1,005,141 3,123,385 2,991,036
 Earnings from continuing
 operations (A) $ 23,488 27,378 84,178 74,348
 Earnings (loss)
 from discontinued
 operations (B) 4,295 11,760 (154,363) 19,774
 Earnings (loss)
 before cumulative effect
 of change in accounting 27,783 39,138 (70,185) 94,122
 Cumulative effect of
 change in accounting (C) --- --- (25,433) ---
 Net earnings (loss) $ 27,783 39,138 (95,618) 94,122
 Earnings (loss) applicable
 to common shares $ 27,783 36,499 (99,235) 86,262
 Average common and common
 equivalent shares 77,959 75,104 77,392 74,783
 Earnings (loss) per common share:
 Continuing
 operations (A) $ 0.30 0.33 1.04 0.89
 Discontinued
 operations (B) 0.06 0.16 (1.99) 0.26
 Cumulative effect of
 change in accounting (C) --- --- (0.33) ---
 Net earnings (loss) 0.36 0.49 (1.28) 1.15
 REVENUE AND EARNINGS BEFORE TAXES
 LINES OF BUSINESS
 Periods ended Sept. 30, 1993 and 1992
 (In thousands)
 Third Quarter Nine Months
 1993 1992(E) 1993 1992(E)
 Revenue:
 Vehicle Leasing &
 Services $ 913,269 865,920 2,667,169 2,517,427
 Automotive Carriers 132,900 143,054 467,177 485,902
 Intersegment (2,674) (3,833) (10,961) (12,293)
 $1,043,495 1,005,141 3,123,385 2,991,036
 Earnings from continuing
 operations before income
 taxes (D):
 Vehicle Leasing &
 Services $ 59,154 42,409 158,814 104,313
 Automotive Carriers 5,156 8,990 21,314 34,673
 Other (7,623) (5,239) (19,680) (11,981)
 $ 56,687 46,160 160,448 127,005
 (A) -- Earnings from continuing operations for the third quarter of 1993 include the impact of the increase in the corporate federal income tax rate from 34 percent to 35 percent, resulting in additional tax expense of $9.4 million ($0.12 per common share).
 (B) -- Earnings (loss) from discontinued operations for 1993 include a second quarter one-time after-tax charge of $169.4 million to restructure the aviation business and to provide for costs associated with the spin off. Earnings from discontinued operations in 1992 include a third quarter after-tax gain of $6.0 million on the final disposition of the discontinued aircraft leasing business.
 (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. 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.
 (E) -- Certain amounts have been restated for discontinued operations.
 RYDER SYSTEM, INC. AND CONSOLIDATED SUBSIDIARIES
 RESULTS OF DISCONTINUED OPERATIONS
 Periods ended Sept. 30, 1993 and 1992
 (In thousands)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Net Sales:
 Commercial engine
 overhaul $ 122,249 107,266 357,578 315,462
 Parts distribution
 services 103,662 112,183 312,989 336,566
 Continuing product
 lines 225,911 219,449 670,567 652,028
 Businesses held
 for sale 62,367 68,179 183,059 215,428
 $ 288,278 287,628 853,626 867,456
 Gross Profit (net sales
 less cost of sales):
 Commercial engine
 overhaul $ 13,391 19,882 52,525 50,272
 Parts distribution
 services 25,285 26,797 78,615 82,442
 Continuing product
 lines 38,676 46,679 131,140 132,714
 Businesses held
 for sale 7,980 12,382 25,916 38,420
 $ 46,656 59,061 157,056 171,134
 Earnings (loss) from
 discontinued aviation
 operations (A) $ 4,295 5,760 (154,363) 13,774
 Earnings from disposition
 of aircraft leasing
 business --- 6,000 --- 6,000
 Earnings (loss) from
 discontinued operations $ 4,295 11,760 (154,363) 19,774
 (A) -- Earnings (loss) from discontinued aviation operations for 1993 include a second quarter one-time after-tax charge of $169.4 million to restructure the aviation business and to provide for costs associated with the spin off. Earnings for the third quarter of 1993 from the businesses held for sale were considered in the determination of the second quarter charge and, therefore, are not included in earnings (loss) from discontinued aviation operations for the quarter.
 -0- 10/21/93
 /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 Sept. 30, 1993 was $4.15 billion.
 Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index./
 /CONTACT: Art Stone of Ryder System, 305-593-3180/
 (R)


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

AW-PC -- FL003 -- 5048 10/21/93 10:03 EDT
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Date:Oct 21, 1993
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