Ryder: Highway To Profits?
Despite the economic slump shares of Ryder are trucking along this year, up 48%. Is this company a highway to profits?
In July, Ryder reported a higher-than-expected profit and left the midpoint of its full-year earnings forecast unchanged.
"Strong operational execution enabled us to overcome the impacts of multiple expected automotive strikes in North America and unexpected customs and cross-border strikes in South America, as well as operational issues in Brazil," Chief Executive Greg Swienton said in a statement.
But, at what point does their business model start to feel the recession? Can they keep up earnings growth despite the cost of gas?
“In our business fuel is mostly a pass through,” explains Swienton on Fast Money. “And we’re involved in providing services that can be done more efficiently and cost effectively than our customers can do themselves.”
Swienton adds that Ryder helps customers become more profitable. “From leasing and maintenance to the supply chain (we help) customers make improvements for their own bottom lines.”
And that strategy has served Ryder well.
"In all the industries we serve, we’re involved in areas where it’s challenging,” replies Swienton. “But we’re adding new customers that help our growth and we’ve done some acquisitions that have helped the top line and the bottom line.”
> Ryder in the Storm
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