RYDER SYSTEMÆS 2001 NET INCOME DOWN 79%
Ryder System Inc., the Miami-based transport and logistics provider, announced on Thursday reported fourth-quarter net income of $27.4 million, which was breakeven with the year-earlier period, but slightly better than Ryder's fourth-quarter projections.
The fourth-quarter results included restructuring and other charges of $32.8 million, compared to $4.7 million in the fourth quarter of 2000. The recent quarter charges included $12.8 million for write-off of goodwill related to operations in South America, $11.2 million for contract termination costs, and employee severance costs of $3.9 million.
Fourth-quarter revenue was $1.19 billion, down from $1.36 billion in the fourth quarter of 2000.
The company, which comprises rental and truck leasing operations, as well as logistics services, blamed its fourth-quarter loss on global economic woes.
C.J. Nelson, Ryder’s senior executive vice president and chief financial officer, said the company was 'able to decrease Ryder’s debt to equity, total obligations to equity, long-term debt, and liabilities during 2001, while increasing the company’s free cash flow.”
For 2001, Ryder's net income was $18.7 million, down 79 percent from the net income of $89.0 million in 2000. Unusual items, primarily restructuring and other charges, totaled $116.5 million, compared with $42.0 million in 2000. Revenue for 2001 was $5.01 billion, down from $5.34 billion in 2000. Ryder’s pre-tax earnings before unusual items were $147.2 million, compared with $183 million in 2000.
Ryder expects 2002 revenue growth to be modest, although 'profit margins and earnings should be better than in 2001,' said Gregory T. Swienton, Ryder's president and chief executive officer.