Ryder System, Inc. (R) has reported 36.75 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $48.20 million, or $0.91 a share in the quarter, compared with $76.20 million, or $1.43 a share for the same period last year. Revenue during the quarter grew 3.38 percent to $1,729.20 million from $1,672.70 million in the previous year period. Gross margin for the quarter contracted 130 basis points over the previous year period to 21.82 percent. Total expenses were 90.37 percent of quarterly revenues, down from 93.62 percent for the same period last year. This has led to an improvement of 325 basis points in operating margin to 9.63 percent.
Commenting on the Companys results, Ryder chairman and chief executive officer Robert Sanchez said, "In the fourth quarter, the used vehicle environment proved even more challenging than expected, and we now anticipate these conditions to continue over the next 18 months. As we indicated was a possibility, we increased wholesaling activity during the quarter to reduce our inventory. Additionally, we adjusted used vehicle inventory valuations based on fourth quarter pricing and further declines anticipated in 2017. We also accelerated depreciation to reflect lower pricing on vehicles in operation we expect to make available for sale through June 2018. These valuation and depreciation actions totaled $0.35 in the quarter and better position these vehicles for sale.
For financial year 2017, the company projects diluted earnings per share to be in the range of $4.78 to $5.08. For financial year 2017, the company projects diluted earnings per share to be in the range of $5.10 to $5.40 on adjusted basis.
Debt comes down marginally
Ryder System, Inc. has recorded a decline in total debt over the last one year. It stood at $5,391.30 million as on Dec. 31, 2016, down 2.02 percent or $111.30 million from $5,502.60 million on Dec. 31, 2015. Total debt was 49.45 percent of total assets as on Dec. 31, 2016, compared with 50.17 percent on Dec. 31, 2015. Debt to equity ratio was at 2.63 as on Dec. 31, 2016, down from 2.77 as on Dec. 31, 2015. Interest coverage ratio improved to 4.73 for the quarter from 3 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
