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Ryder (NYSE: R) cited a stronger market for used vehicles as a reason for its turnaround from an operating loss in the fourth quarter of 2019 to an operating profit this year.
Under GAAP provisions, Ryder in the fourth quarter of 2020 posted earnings per share of 48 cents. In the corresponding quarter of 2019, that number was a loss of $1.02 per share. Under non-GAAP accounting, income from continuing operations was 83 cents last quarter, including a 38-cents-per-share hit for a bonus to front-line employees. Last year, that number was just under breakeven, with a loss of 1 cent per share.
Ryder s profitability is heavily dependent on the margins of the market it finds for its sales of used vehicles out of its Fleet Management Solutions division, which is more than 60% of the company s revenue. It is that division that leases trucks and other equipment to customers.