Q3 2024 Ryder System Inc Earnings Call Transcript
Key Points
- Ryder System Inc (R) reported a 9% increase in operating revenue for the third quarter, driven by recent acquisitions.
- The company's contractual businesses, including Fleet Management Solutions, Dedicated, and Supply Chain, showed double-digit percentage growth.
- Ryder System Inc (R) has a strong balance sheet with leverage below the target range, providing ample capacity for capital allocation priorities.
- The company has a new $2 million share repurchase program, reflecting confidence in its financial position.
- Ryder System Inc (R) expects to generate approximately $10 billion from operating cash flow and used vehicle sales proceeds between 2024 and 2026, creating significant capital deployment capacity.
- The company experienced a decline in comparable earnings per share from continuing operations, reflecting weaker market conditions in used vehicle sales and rental.
- Rental utilization on the power fleet was 71%, down from 75% in the prior year, indicating ongoing weakness in the freight environment.
- Used vehicle sales proceeds declined significantly, with tractor proceeds down 22% and truck proceeds down 19% year-over-year.
- The extended freight downturn and economic uncertainty have caused some customers to delay decisions and downsize their fleets.
- Ryder System Inc (R) faces competitive pressure in the lease market, particularly from redeployable assets, which can impact pricing.
And and no AND Comic Relief standby. Good morning, and welcome to the Ryder System Third Quarter 2024 earnings release conference call. All lines are in a listen only mode until after the presentation. Today's call is being recorded. You have any objections. Please disconnect at this time. I would now like to introduce Ms. scaling and our Vice President, Investor Relations for Ryder. Ms. Candela, you may begin.
Thank you. Good morning, and welcome to Ryder's Third Quarter 2024 earnings conference call. I'd like to remind you that during this presentation, you'll hear some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic business, competitive market, political, and regulatory factors. For detailed information about
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