The economic downturn has taken its expected toll on truck rental and, in some segments, freight volume, but transportation giant Ryder System is showing gains in some areas.

The company reported first quarter revenues of $1.29 billion, down 2% from first quarter 2000. Net earnings, including $10.5 million in restructuring charges, were $4.1 million compared to $19.8 million a year ago.
Ryder’s Fleet Management Solutions business segment posted dry revenue (revenue excluding fuel) of $671.8 million, down 2% from first quarter last year. Revenue from commercial truck rental was down 10% but full-service lease and contract maintenance revenue was up more than 1%. The company said improved contribution margins on the lease and contract maintenance side partially offset margin reductions in other operations.
Gains on equipment sales were $3.1 million, down 66.3% from a year ago, due to the continuing weak used truck market. However Ryder noted that it still managed to sell some 3,400 vehicles during the quarter. Average proceeds per vehicle were 11% below first quarter 2000 but 5% higher than fourth quarter.
First quarter revenues for Ryder’s Supply Chain Solutions segment totaled $385.3 million,down 0.3% from last year. The North American sector experienced slowdowns in automotive and consumer packaged goods businesses, but a 16% gain in the electronics,high tech and telecommunications gave them a 4% increase overall.
To further illustrate the uneven impact of the economic downturn, Ryder noted that SCS vehicle-based revenue was down 4% for the quarter. This is basically work performed in the manufacturing and industrial sectors. On the other hand, revenue for more complex service-based offerings, such as network management and supplier logistics, was up 15%.
Ryder’s Dedicated Contract Carriage segment posted revenues of $130.6 million, down 2.2% from first quarter 2000. The contribution margin for this business was hurt by slowing demand and higher labor charges due to the driver shortage.