Ryder Recognized with Logistics Management Magazine’s 2011 ‘Quest for Quality’ Award
MIAMI–(BUSINESS WIRE)– Ryder System, Inc. (NYSE: R), a leader in supply chain, warehousing and transportation management solutions, today announced it has earned Logistics Management magazine’s “Quest for Quality” award for the fourth year in a row in recognition of outstanding performance in the Third-Party Logistics (3PL) category. The Quest for Quality Awards recognize the best-performing transportation and logistics service providers, as ranked by Logistics Management readers. For this year’s recognition, more than 5,000 qualified buyers of logistics and transportation services cast their votes.
“The Quest for Quality Award reinforces that achieving excellence in supply chain execution is more important than ever in the logistics industry,” said Ryder’s President of Global Supply Chain Solutions John Williford. “As supply chains have grown more complex, and inventory-to-sales ratios have continued to decline, consistent reliable performance has become more important than ever. We are proud to receive this recognition for helping our clients operate leaner and continuously improve their operations.”
In the Quest for Quality Awards survey, third party logistics providers were evaluated on key performance criteria such as carrier selection and negotiation, order fulfillment, transportation and distribution, inventory management, and logistics information systems. Final recipients will be featured in the August issue of Logistics Management.
“Considering the challenging environment in which carriers and 3PLs found themselves operating over the past 12 months, the editorial staff of Logistics Management agrees that walking away with a Quest for Quality Award in 2011 is an extraordinary achievement,” said Michael Levans, Group Editorial Director of Peerless Media’s Supply Chain Group. “Winning a Quest for Quality in these times is the ultimate vote of confidence.”
Ryder Acquires Hill Hire : UK-Based Commercial Truck Leasing, Rental and Maintenance Provider
MIAMI–(BUSINESS WIRE)–Ryder System, Inc. (NYSE:R), a leader in commercial transportation and supply chain management solutions, today announced it has acquired Bradford, England-based Hill Hire plc, an independently run and wholly owned subsidiary of Lloyds Banking Group. Hill Hire is a UK market leader in commercial truck leasing, rental and maintenance, with a solid base of contractual customers. The stock acquisition was completed on June 8, 2011 at a cash price of approximately £154 million (approximately $252 million).
“As we celebrate our 40th year of operating in the UK, this significant acquisition underscores Ryder’s commitment to serving current and future customers in this important market with a broader range of vehicles and expanded maintenance capabilities and infrastructure,” said Ryder Chairman and Chief Executive Officer Greg Swienton.
The acquisition is expected to add approximately £90 million (approximately $147 million) in annual revenue to Ryder’s Global Fleet Management Solutions (FMS) business segment, and be accretive to Ryder’s earnings in 2011. Once the transition and consolidation process has been fully completed, the combined Ryder and Hill Hire business will operate under the Ryder name. The acquisition adds approximately 4,000 heavy duty vehicles, split evenly between contract hire (full service lease) and commercial rental; ancillary equipment including a large trailer fleet for contractual lease and rental; and the company’s workforce of 300 employees including maintenance technicians. The acquisition also encompasses all of Hill Hire’s 13 well-equipped vehicle maintenance facilities located throughout the UK.
David Hunt, Vice President and Managing Director, Fleet Management Solutions, Ryder Europe, said, “Hill Hire is a well respected and successful business serving the needs of national blue chip customers. The acquisition accelerates our growth strategy by expanding our fleet offering in the heavy duty vehicle contract hire (full service lease) and rental market, as well as our customer base in a sector that we have targeted for expansion.”
Mr. Hunt continued, “There are tremendous benefits in bringing the two businesses together. Hill Hire’s heavy duty vehicle fleet, which comprises 60% tractors, complements our existing fleet, which consists primarily of light and medium duty trucks. Combined, we will be able to provide expanded fleet choices and value for customers with additional payload and vehicle specification options to further strengthen the Ryder offering. Additionally, Hill Hire’s UK service facility network will enhance the geographic reach of our business, to better serve the needs of new and existing customers of the combined companies. Our Ryder team looks forward to delivering enhanced value to our customers through expanded resources and fleet options that will drive higher levels of efficiency into their transportation operations.”
Tags: commercial truck rental, Ryder
Ryder Reports First Quarter 2011 Results
- Q1 EPS from Continuing Operations Up 108% to $0.50
- Q1 Comparable EPS from Continuing Operations Up 113% to $0.51
- Q1 Total Revenue Up 17%; Operating Revenue Grows 14%
- Full-Year 2011 Comparable EPS Forecast Raised to $2.90 to $3.00
MIAMI–(BUSINESS WIRE)– Ryder System, Inc. (NYSE: R), a leader in transportation and supply chain management solutions, today reported earnings per diluted share from continuing operations for the three-month period ended March 31, 2011 were $0.50, compared with $0.24 in the year-earlier period. Earnings from continuing operations were $25.9 million, compared with $12.9 million in the year-earlier period. Earnings per diluted share and net earnings for the first quarter of 2011 included a restructuring charge of $0.01 and $0.5 million, respectively. Excluding this item, comparable earnings per diluted share from continuing operations for the first quarter of 2011 were $0.51, up 113% from $0.24 in the same period of 2010. Comparable earnings from continuing operations of $26.3 million for the first quarter of 2011 were up 104% from $12.9 million in the year-earlier period. The increase in comparable earnings primarily reflects better organic performance in commercial rental and used vehicle sales, acquisitions, and higher volumes in the Supply Chain Solutions (SCS) business segment.
Net earnings per diluted share (including discontinued operations) for the three-month period ended March 31, 2011 were $0.48 versus $0.23 in the year-earlier period. Earnings per diluted share from discontinued operations (previously announced in 2009) totaled a loss of $0.02 in the first quarter of 2011, compared with a loss of $0.01 in the same period of the prior year. Net earnings for the first quarter of 2011 were $25.1 million versus $12.4 million in the year-earlier period.
Total revenue for the first quarter of 2011 was $1.43 billion, up 17% from $1.22 billion in the same period last year. Operating revenue (revenue excluding Fleet Management Solutions fuel and all subcontracted transportation), was $1.13 billion, up 14% compared with $987.6 million in the year-earlier period, reflecting the benefit of acquisitions and organic growth. Fleet Management Solutions (FMS) business segment total revenue increased 11% due primarily to higher fuel services and commercial rental revenues. FMS operating revenue increased 6% due primarily to higher commercial rental revenue. SCS business segment total and operating revenue both increased 36% due to an acquisition and higher freight volumes. Dedicated Contract Carriage (DCC) business segment total revenue increased 16% and operating revenue increased 15%, reflecting an acquisition and the pass-through of higher fuel costs.
“Ryder performed significantly better than expected in the first quarter, with continuing strong organic results in our used vehicle sales and commercial truck rental product lines, and from acquisitions which contributed earlier and stronger than anticipated,” said Ryder Chairman and CEO Greg Swienton. “Our full service lease fleet expanded for the first time in eight quarters, with the positive impact of recent acquisitions. We also saw a number of key indicators that reflected stronger activity with our lease customers including increases in miles driven per unit and a significant reduction in early terminations of customer lease agreements. Our lease product line was, however, impacted by higher maintenance costs on an older fleet. Our supply chain management business also demonstrated continued earnings improvement with revenue growth in all of our four targeted industry sectors. In addition to delivering exceptionally strong results for the quarter, we also began to make strategic investments in technology and sales and marketing to benefit future years.”
First Quarter Business Segment Operating Results
Fleet Management Solutions (FMS)
In the FMS business segment, total revenue in the first quarter of 2011 was $980.1 million, up 11% compared with the year-earlier period. Fuel services revenue in the first quarter of 2011 increased 26% compared with the same period in 2010 due to higher fuel prices. Operating revenue (revenue excluding fuel) in the first quarter of 2011 was $719.0 million, up 6% compared with the year-earlier period. Full service lease revenue increased 1% in the first quarter of 2011 due to acquisitions and favorable foreign exchange rate movements. Commercial rental revenue increased 34% reflecting improving global market demand and higher pricing. Rental power fleet utilization improved approximately 400 basis points to 73% in the first quarter of 2011. FMS total revenue and operating revenue included a favorable foreign exchange impact of 1%.
The FMS business segment’s pre-tax earnings were $38.6 million in the first quarter of 2011, up 78% compared with $21.7 million in the same period of 2010. This increase primarily reflected significantly better commercial rental performance and improved used vehicle sales results. As expected, these items were partially offset by lower full service lease results and planned higher spending on initiatives. Commercial rental performance improved as a result of increasing market demand and higher pricing on an 11% larger average fleet. Used vehicle sales results were favorably impacted by higher pricing, as well as lower average quarterly inventory levels compared with the prior-year period. Full service lease results continued to be adversely impacted by higher maintenance costs on a comparatively older fleet. However, lease mileage comparisons improved, reflecting increased usage of existing customer leased fleets. Results were impacted by increased compensation-related expenses and higher planned spending on growth initiatives. FMS first quarter results also benefited from a gain of $2.4 million from the sale of a facility, as well as the acquisitions of The Scully Companies (Scully) and Carmenita Leasing Company. Business segment pre-tax earnings as a percentage of operating revenue was 5.4% in the first quarter of 2011, up 220 basis points compared with 3.2% in the same quarter a year ago.
Supply Chain Solutions (SCS)
In the SCS business segment, first quarter 2011 total revenue was $401.0 million, up 36% from the comparable period in 2010. First quarter 2011 operating revenue (revenue excluding subcontracted transportation) was $324.3 million, up 36% compared with the comparable period a year ago. SCS total revenue and operating revenue comparisons benefited from the acquisition of Total Logistic Control (TLC) in December of 2010 and higher freight volumes.
The SCS business segment’s pre-tax earnings in the first quarter of 2011 were $12.1 million, up 72% compared with $7.0 million in the same quarter of 2010, driven by the TLC acquisition, better operating performance, and higher volumes. First quarter 2011 pre-tax earnings for the business segment as a percentage of operating revenue were 3.7%, up 80 basis points compared with 2.9% in the same quarter of 2010.
Dedicated Contract Carriage (DCC)
In the DCC business segment, first quarter 2011 total revenue of $134.7 million was up 16% compared with the first quarter of 2010. Operating revenue (revenue excluding subcontracted transportation) in the first quarter of 2011 was $128.4 million, an increase of 15% from the year-earlier period. Total and operating revenue grew due to the acquisition of Scully in January 2011 and higher fuel cost pass-throughs.
The DCC business segment’s pre-tax earnings in the first quarter of 2011 were $7.4 million, unchanged from the first quarter of 2010. Business segment pre-tax earnings benefited from the Scully acquisition but were offset by unusually high costs incurred to close certain customer locations and increased driver costs. Business segment pre-tax earnings as a percentage of operating revenue were 5.8% in the first quarter of 2011, down 80 basis points compared with 6.6% in the year-earlier period.
Corporate Financial Information
Central Support Services
Central Support Services (CSS) are overhead costs incurred to support all business segments and product lines. Most CSS costs are allocated to the various business segments. In the first quarter of 2011, CSS costs were $45.5 million, up from $42.4 million in the year-earlier period reflecting planned strategic investments in information technology initiatives and higher compensation expense.
Restructuring and Other Items
Pre-tax restructuring charges totaled $0.8 million ($0.5 million after tax), or $0.01 per diluted share in the first quarter of 2011. These planned charges related to the acquisition of Scully, and included severance and employee-related costs, as well as the cancellation of certain non-essential equipment contracts.
Income Taxes
The Company’s effective income tax rate from continuing operations for the first quarter of 2011 was 40.7% of pre-tax earnings compared with 42.8% in the year-earlier period. The current period income tax rate was negatively impacted by a tax law change in Illinois of $1.2 million (2.8% of pre-tax earnings), reducing reported earnings by $0.02 per diluted share. The year-earlier period income tax rate was impacted by non-deductible items on lower earnings.
Capital Expenditures
Capital expenditures from continuing operations were $448 million for the first quarter of 2011, compared with $276 million in the same period of 2010. Net capital expenditures (including proceeds from the sale of assets) from continuing operations were $377 million, up 66% from $227 million in the same period of 2010. The increase reflects investments to refresh and grow the rental fleet.
Cash Flow
Operating cash flow from continuing operations through March 31, 2011 was $218 million, down from $271 million in the same period of 2010, due to increased working capital needs. Total cash generated (including proceeds from used vehicle sales) from continuing operations through March 31, 2011, was $304 million, compared with $336 million in the same period of 2010. Free cash flow from continuing operations through March 31, 2011 was negative $10 million, down from a positive $136 million for the same period of 2010, primarily due to increased vehicle investments.
Leverage
Balance sheet debt as of March 31, 2011 increased by $62 million compared with year-end 2010, due primarily to increased investments in vehicles and acquisition activity. The leverage ratio for balance sheet debt as of March 31, 2011 was 195%, compared with 196% at year-end 2010. Total obligations to equity as of March 31, 2011 were 202%, compared with 203% at year-end 2010.
2011 Outlook
“We expect continuing strong revenue and earnings performance from organic growth in many areas of our business and increasing contributions from recent acquisitions, including four announced since early December,” said Mr. Swienton, commenting on Ryder’s 2011 outlook. “Our Fleet Management Solutions business should continue to produce strong results from the commercial rental and used vehicles sales product lines and we remain on track to deliver organic expansion of lease fleet levels beginning in the second half of the year. The positive revenue trends in our Supply Chain Solutions business are expected to continue. SCS results, however, will be adversely affected by customer business impacts, especially announced automotive production cuts from one significant customer related to recent natural disasters in Japan. Our strong balance sheet continues to enable us to invest in acquisitions, implement more efficient technologies, develop product improvements and innovations, and expand sales and marketing capabilities. Taken together, our operational performance and strategic actions have Ryder well-aligned to deliver substantially improved results in the near term, while advancing our competitive position and ability to leverage higher earnings in future periods.”
He continued, “The second quarter and full-year forecast ranges assume the continued impact of automotive production cuts primarily with one significant customer related to the Japanese disasters. We estimate the downside impact to be $0.10 to $0.15 per share for the remainder of the year. Based on currently available information, we expect a ramp up of production levels in the second half of the year; however, these production levels are subject to change as conditions develop. Even with this anticipated negative impact, we are still raising our full-year 2011 earnings forecast to a range of $2.90 to $3.00 per share, up from a previous range of $2.80 to $2.90. Additionally, we have established a second quarter earnings forecast of $0.72 to $0.77 per share.”
About Ryder
Ryder System, Inc. is a FORTUNE 500® commercial transportation, logistics and supply chain management solutions company. Ryder’s stock (NYSE: R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. The Company’s financial performance is reported in the following three, inter-related business segments:
- Fleet Management Solutions – The FMS business segment combines several capabilities into a comprehensive package that provides one-stop outsourcing of the acquisition, financing, maintenance, management, and disposal of vehicles. Ryder’s commercial rental service offers customers a method to expand their fleets in order to address short-term capacity needs.
- Supply Chain Solutions – The SCS business segment offers a broad range of innovative logistics management services that are designed to optimize a customer’s supply chain and address key customer business requirements. These solutions involve strategically designed processes that direct the movement of materials and related information from the acquisition of raw materials to the delivery of finished products to the end user.
- Dedicated Contract Carriage – The DCC business segment provides customers with vehicles, drivers, management, and administrative support, with the assets committed to a specific customer for a contractual term. DCC supports customers with both basic and sophisticated logistics and transportation needs, including routing and scheduling, specialized driver services, and logistics engineering support.
Pre-Tax Earnings: Ryder’s primary measurement of business segment financial performance, pre-tax earnings from continuing operations (pre-tax earnings), allocates Central Support Services to each business segment and excludes restructuring and other items.
Capital Expenditures: In Ryder’s business, capital expenditures are generally used to purchase revenue earning equipment (trucks, tractors, and trailers) primarily to support the full service lease product line and secondarily to support the commercial rental product line within Ryder’s FMS business segment. The level of capital required to support the full service lease product line varies directly with customer contract signings for replacement vehicles and growth. These contracts are long-term agreements that result in ongoing revenues and cash flows to Ryder, typically over a three- to ten-year term. The commercial rental product line utilizes capital for the purchase of vehicles to replenish and expand the Company’s fleet available for shorter-term use by contractual or occasional customers.
Ryder Opens 16th Facility in S. California for Truck Rental, Leasing and Maintenance
MIAMI–(BUSINESS WIRE)–Ryder System, Inc. (NYSE: R), a leader in transportation and supply chain management solutions, has opened a truck rental, leasing, and maintenance facility at 3500 Market Street, Ventura, Calif., to offer comprehensive transportation solutions to customers in the area. As Ryder’s 16th service location in Southern California, the new facility will immediately begin providing maintenance to a diverse fleet of commercial vehicles from Ryder’s existing customers in the area, as well as provide truck leasing and rental services.
Located on 2.1 acres, the 28,000-square-foot service facility is an upgrade of Ryder’s previous half-acre location in Oxnard and has the capacity to grow as Ryder expands in the local market. It features three maintenance bays and a state-of-the-art preventive maintenance bay with cutting-edge vehicle diagnostics equipment. The facility will also provide fueling services to Ryder customers in the near future.
“Customer demand has grown steadily in Southern California. We want to be sure that we can provide the best infrastructure and technology available in the marketplace to service those customers,” said Robert Sanchez, President of Global Fleet Management Solutions for Ryder. “We look forward to serving our customers with this new facility and assisting them with all of their fleet and transportation needs.”
Ryder held a grand opening event at the Ventura service facility on April 5th and was joined by local delegates of the American Red Cross, who provided information on disaster preparedness to attendees.
Ryder’s Full Service Lease offering is a customized transportation solution that provides customers with commercial vehicles for lease and a variety of support services, including emergency roadside assistance, preventive maintenance services, fueling, equipment evaluations and specification, fleet management reporting tools, administrative support, and driver safety programs. Ryder’s Contract Maintenance product line provides maintenance to both Ryder’s full service lease customers as well as other customers who wish to use Ryder’s extensive network of facilities and technicians to maintain their trucks, and Ryder’s Commercial Rental product line provides customers with rental trucks on a short-term basis to meet their needs for supplemental capacity. Ryder’s new service facility in Ventura will open Monday through Friday, 8:00 a.m. – 8:00 p.m. For additional information, please call the facility at 805-483-8271.
Ryder Orders 202 Heavy-Duty Natural Gas Trucks
Mar. 31, 2011 (Business Wire) — Ryder System, Inc., a leader in commercial transportation and supply chain management solutions, today announced that it reached a key milestone in a major alternative fuel initiative with the order of 202 heavy-duty natural gas vehicles. The vehicle order is part of Ryder’s agreement with the San Bernardino Associated Governments (SANBAG) to launch a groundbreaking heavy-duty natural gas truck rental and leasing project in Southern California. Ryder will begin taking delivery of the vehicles in April, and expects to have the full order integrated into its fleet by September. Ryder will also begin work this month to upgrade the first of three existing maintenance facilities in its network to be properly equipped for the indoor servicing of natural gas vehicles and will soon commence construction of two natural gas fueling stations.
In addition to reducing emissions, businesses that incorporate natural gas vehicles in their fleet have the opportunity to realize additional cost savings because natural gas fuel prices are significantly lower than diesel fuel prices, which are currently on the rise.
“We are excited about taking these first important steps to kick off what is proving to be one of the most innovative and large-scale commercial natural gas truck projects in North America,” stated Robert Sanchez, President of Global Fleet Management Solutions for Ryder. “This project reinforces our ongoing commitment to deliver environmentally-sound and cost-effective transportation solutions, while serving as a model for how to successfully implement alternative fuel programs in large commercial truck operations.”
“This project is a great illustration of the potential for success when the right project partners assemble and work as a team,” said SANBAG President and San Bernardino County First District Supervisor, Brad Mitzelfelt. “We are proud to play a role in an important project in which each partner has made a contribution. This project confirms SANBAG’s commitment to creative problem solving and enhancing the quality of life for our residents.”
About the Project
The SANBAG project, awarded to Ryder in April 2010, is being conducted in partnership with the Southern California Association of Governments (SCAG) Clean Cities Coalition. It is intended to increase the use of domestically produced alternative fuels and reduce emissions by bolstering the existing regional infrastructure in Southern California. When fully implemented, the project will displace more than 1.5 million gallons of diesel annually with 100 percent domestically produced low-carbon natural gas. The project will contribute to the maintenance and creation of more than 400 U.S. green automotive jobs located in regions of the country that have been the hardest hit by the recent economic downturn. Based on estimates using California’s Carl Moyer program guidelines, the project will reduce more than 9.2 million pounds (4,195 metric tons) of greenhouse gas emissions per year, more than 131 tons of nitrogen oxide emissions annually, and completely eliminate 2.65 tons of diesel particulate emissions from local neighborhoods.
The $38.7 million project will be funded as part of a joint public/private industry partnership between the U.S. Department of Energy, the California Energy Commission, and Ryder. $19.3 million of the total project funding will be provided by state and federal sources, including $9.95 million from the U.S. Department of Energy’s Alternative Fuel and Advanced Vehicles Pilot Program funded through the American Recovery and Reinvestment Act of 2009 (ARRA), and $9.3 million via the California Energy Commission’s Alternative and Renewable Fuel & Vehicle Technology Program. Demonstrating Ryder’s strategic commitment to alternative fuels, the Company is also committing $19.4 million of its own capital into the project.
Vehicle Configurations
Ryder worked extensively with its OEM partners to determine the right vehicle mix and configurations to meet the needs and applications of customers in the Southern California market. The order includes 182 Freightliner M2-112 tractors, featuring the Cummins ISL-G engine, in both single-axle and tandem-axle day cab configurations. This represents the largest single heavy-duty natural gas truck order for Freightliner in North America. The balance of the order will include a mix of other unit configurations supplied from a variety of manufacturers. The trucks will be equipped with either liquefied or compressed natural gas (LNG and CNG) on-board fuel storage systems.
All 202 vehicles will be equipped with RydeSmart®, Ryder’s proprietary GPS fleet location, tracking, and vehicle performance management system. The RydeSmart® onboard telematics technology continuously monitors each vehicle’s location, mileage and speed, as well as other performance and diagnostic data. That information is communicated every 15 minutes and on-demand, as necessary, via a dedicated and secure cellular connection to fleet operators’ desktops. Using this depth of real-time fleet information and visibility down to individual vehicles, fleet operators can make a quantum leap in saving labor, time and money, while improving productivity and customer satisfaction. More information about RydeSmart® can be found at www.rydesmart.ryder.com.
These ultra low-emission trucks will be deployed into Ryder’s Southern California operations network, where Ryder’s 1,200 customers will be able to access them through short-term rentals, long-term leases, or through Ryder’s dedicated logistics services.
Infrastructure
As part of Ryder’s agreement with SANBAG, the Company will also maintain the vehicles at three strategically located maintenance shops in Rancho Dominguez, Orange, and Fontana. The upgrade of the first facility in Rancho Dominguez will begin this month and is expected to be completed and ready to service natural gas vehicles in April. A number of important steps are required to ensure the facility will meet stringent industry and government safety standards for natural gas vehicle maintenance. These include upgrades of shop electrical and lighting systems, as well as the installation of enhanced air handling and ventilation systems and natural gas refueling stations. Ryder’s professional maintenance technicians are also receiving extensive, specialized training on the maintenance and repair of heavy-duty natural gas vehicles.
Technical and administrative support for this project is being managed by Gladstein, Neandross and Associates, an environmental consulting firm that is widely recognized throughout the United States for its expertise on air quality issues, alternative fuel vehicles, and infrastructure and energy projects.
For information and ongoing updates about the project, please visit www.thengvproject.com.
Tags: natural gas trucks, Ryder
Ryder Rental Fleet with 6,700 New Trucks, Tractors, and Trailers
MIAMI–(BUSINESS WIRE)–Ryder System, Inc. (NYSE: R), a leader in commercial truck rental, leasing and transportation solutions, announced that it is expanding and refreshing its North American rental fleet with 6,700 newtrucks, tractors, trailers, and vans to meet accelerating demand as the economy continues to rebound. The new vehicles, which represent multiple classes of tractors, trailers, refrigerated equipment, box trucks, and light-duty vans,will expand Ryder’s commercial rental fleet and replace older model vehicles that are being retired.
The 2011 refresh adds to the recent infusion of 4,900 new vehicles introduced in 2010 to accommodate anticipated economic growth.
Together, the nearly 12,000 new vehicles raise the percentage of model-year-2010 or newer vehicles in the fleet to more than 40 percent and the total fleet count to nearly 30,000. With the recent fleet expansion, the Ryder rental fleet is one of the largest in the industry and is proactively positioned to address growing demand as Ryder’s North American customers require increased capacity.
“This investment represents the second phase of a fleet refresh we launched last year in anticipation of increased demand from both rental and lease customers requiring supplemental capacity in a recovering economy,” said Mark Cicchini, Vice President of Rental for Ryder. “With this purchase, we can ensure that we continue to respond to our North American customers’ diverse requirements with a positive Ryder experience.”
To determine the scope and breadth of the vehicle order, Ryder examined utilization and market trends across its customer base. “Last year we identified increasing demand across all classes of vehicles – light-duty vans and trucks, medium-duty trucks, heavy-duty day cabs and sleeper tractors and dry, refrigerated, and flatbed trailers. This year, we’re seeing even more of an uptick in demand,” Cicchini continued.
“Together, the 2010 and 2011 fleet expansions will provide our customers with greater availability of all classes, including Ryder’s Light Duty MetroVan™. We’ve also added more refrigerated equipment to help our customers comply with recent FDA Food Safety Modernization legislation and more environmentally-friendly emissions standards in certain regions.”
All of the model-year-2010 or newer vehicles comply with the latest EPA 2010 emissions standards – underscoring Ryder’s commitment to providing customers with access to clean, high-quality, road-ready trucks that increasingly help them to meet their own objectives for reducing emissions and minimizing environmental impact.
Ryder has already begun integrating the new equipment into its fleet and will continue to roll out new vehicles through April of this year. As vehicles are retired from Ryder’s rental fleet, they will become part of the Company’s used vehicle inventory. Extending the useful life of retired vehicles by moving them into Ryder’s used vehicle inventory increases the availability of newer, highly maintained Ryder Road Ready™ vehicles available for sale.
Ryder serves customers with more than 500 convenient rental locations across the U.S. and Canada, staffed with a dedicated team of knowledgeable rental agents, and stocked with an inventory of close to 30,000 recent-modelvehicles. All rental vehicles are backed by Ryder’s Rental Service Guarantee.
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