The U.S. and global recession continue to impact Ryder System and its customers, but President and CEO Gregory Swienton says they expect modest growth and improved profit margins this year.

“Some customers are motivated to increase outsourcing in periods of economic slowdown, and Ryder is ready and able to serve them,” he said. “We are also positioned for further improvement as the economy regains momentum. Our focus will continue to be on bottom-line returns and not just on top-line growth.”
The company reported 2001 net earnings of $18.7 million on revenue of $5.01 billion compared to $89 million on $5.34 billion in the previous year. Pre-tax earnings before unusual items were $147.2 million versus $183.3 million in 2000. Restructuring and other one-time charges totaled $116.5 million for 2001, compared to $42 million the previous year.
Net earnings were breakeven for the fourth quarter, compared with a $27.4 million profit in fourth quarter 2000. Fourth quarter revenue was $1.19 billion, down from $1.36 billion in fourth quarter 2000.
Ryder’s Fleet Management Solutions segment, including full-service lease and commercial rental, saw a 5% drop in quarterly dry revenue (revenue excluding fuel), from $689.5 million in fourth quarter 2000 to $655.3 million in fourth quarter 2001. Most of the decrease was attributed to a decline in demand for commercial rental vehicles. Contribution margin as a percentage of dry revenue was 12.5 percent in the fourth quarter of 2001 compared with 14.1 percent in the same quarter a year ago, and was primarily impacted by lower rental margin.
Fourth quarter revenue for its Supply Chain Solutions segment totaled $339.1 million, down 19.1 percent from $419.3 million in the comparable period in 2000. Fourth quarter 2001 operating revenue was $242.9 million, down 15.9 percent from $288.7 million in the comparable period a year ago. The decreases were due primarily to volume reductions resulting from recession-related slowdowns in many industrial categories Ryder serves in the U.S., Latin America and Europe. The contribution margin as a percentage of operating revenue was 7.9 percent in the fourth quarter of 2001, compared with 6.5 percent in the same quarter of 2000.
Ryder's Dedicated Contract Carriage segment had fourth quarter revenue of $133.5 million, down 5.1 percent from fourth quarter 2000. Operating revenue in the fourth quarter was $132.5 million, down 4.3 percent from $138.5 million in the comparable period a year ago. Contribution margin as a percentage of operating revenue was 11.9 percent compared with 12.1 percent last year. The decreases were primarily caused by general economic conditions, which were reflected in decreases in the amount of freight moved and miles driven.
Swienton added that, while Ryder expects only modest revenue growth this year, profit margins and earnings should be better than in 2001.