Dive Brief:
- Ryder System Inc. reported Q2 operating revenue of $2.6 billion, a 10% year-over-year jump, the company said July 25.
- The South Florida-based transportation conglomerate credited its acquisition of Cardinal Logistics for a portion of the strong quarterly growth of its dedicated businesses, which was announced in February.
- While the integration of Cardinal Logistics is on track and the company is positioned to make another deal, it’s not actively seeking another purchase, Ryder Chairman and CEO Robert Sanchez said on a call with analysts.
Dive Insight:
Ryder recorded Q2 gains in its fleet management solutions segment, which reported revenues of $1.48 billion, a 1% increase from last year. Its supply chain solutions business jumped 14% YoY on revenues of $1.34 billion.
Operating revenue in its dedicated business rocketed 48% YoY to $485 million, Ryder said.
However, weak sales of used trucks and tractors weighed on the company. Its 5% YoY increase in tractor sale proceeds was negated by a 10% drop in sales from used trucks.
Growing its dedicated trucking business is an immediate focus for Ryder, Sanchez said. The company expects its acquisition of Cardinal Logistics will deliver $800 million in annual operating revenue once fully integrated.
Sanchez said in the next year the company expects operational synergies to deliver an additional $40 million to $60 million in savings.
Though Ryder could do another deal, it will be selective, he said.
“Do we have the bandwidth to do another acquisition? I mean we do, we could,” Sanchez said, noting that Cardinal Logistics was a significant acquisition for the company.
“We’re really focusing on making sure we get this one right and that we get it on track in terms of all the activities we have to do,” he said.
