RYDERÆS 3RD QUARTER EARNINGS FALL
Ryder Systen Inc., a transportation facilitator based in Miami, reported a sharp drop in third-quarter earnings.
The company report net earnings of $12.1 million, compared to $361.5 million for the year earlier quarter. The 1999 quarter, however, included a $335.4 million after-tax gain on the sale of Ryder's Public Transportation division.
Pre-tax earnings from continued operations totaled $56.6 million in the third quarter, compared with $61.7 million for the year-earlier period. However, Ryder took a pre-tax charge of $37.7 million, which included a write-down of certain Ryder-owned unsold used tractors, an increase in reserves for guaranteed terminal values for equipment that Ryder leases rather than owns, and a write-down of assets impaired in connection with the settlement of a long-standing contract dispute. Minus the pre-tax charge, Ryder's pre-tax earnings were $19.3 million, compared to $56.4 million for the third quarter of 1999.
Revenue of $1.34 billion in the third quarter of 2000, up about 6 percent from $1.26 billion in the comparable period of 1999.
“Ryder’s operating results were in line with current estimates, despite the industry-wide weakened used truck market,” said Gregory T. Swienton, Ryder’s president and chief operating officer, who will become chief operating officer as well, effective Nov. 1.
