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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 6, 1996
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RYDER SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
Florida 1-4364 59-0739250
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
3600 N.W. 82nd Avenue, Miami, Florida 33166
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:(305) 593-3276
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Item 5. Other Events.
Ryder System, Inc. (the "Company") announced its 1995 annual and
fourth quarter revenue and earnings today. A copy of the Company's press
release dated February 6, 1996 reporting its 1995 annual and fourth quarter
revenue and earnings is attached hereto as Exhibit 99.
1. Press Release dated February 6, 1996, issued by Ryder System, Inc.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: February 6, 1996
RYDER SYSTEM, INC.
By: /s/ James M. Herron
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Name: James M. Herron
Title: Senior Executive Vice President
and General Counsel
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EXHIBIT INDEX
Sequentially
Numbered
Exhibit No. Title Page
- ----------- ----- ------------
[S] [C]
99. Press Release dated February 6, 1996,
issued by Ryder System, Inc.
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ITEM 5. OTHER EVENTS
[SEE ATTACHED EXHIBIT]
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NEWS RELEASE
(RYDER LOGO)
FOR IMMEDIATE RELEASE
Contact: Art Stone
(305) 593-3180
RYDER REPORTS HIGHER EARNINGS IN 1995
MIAMI, FLORIDA, February 6, 1996 -- Earnings before accounting change
of Ryder System, Inc. (NYSE: R) in 1995 exceeded the company's record 1994
earnings, it was reported here today by Chairman, President and Chief Executive
Officer M. Anthony Burns.
"Our company performed well in 1995, despite the impact of a softening
economy which negatively impacted vehicle utilization, a 32-day strike by the
International Brotherhood of Teamsters and costs related to reorganizations and
the implementation of reeingineering initiatives," Burns said "Our contractual
businesses continued to grow, and we are particularly pleased by the
performance of Ryder Dedicated Logistics, which had revenue growth of more than
30%."
For the full year of 1995, revenue rose to $5.17 billion, compared
with revenue of $4.69 billion in 1994. Earnings before accounting change were
$155.4 million, or $1.96 per share, compared with 1994 net earnings of $153.5
million, or $1.95 per share. Net earnings in 1995 were reduced by $7.8
million, or $0.10 per share, due to a first quarter change in accounting for
charitable contributions.
In 1995's fourth quarter, revenue totaled $1.35 billion, compared with
revenue of $1.24 billion in the fourth quarter of 1994. Net earnings in the
fourth quarter of 1995 rose to $56.4 million, or $0.71 per share, compared with
fourth quarter 1994 net earnings of $38.0 million, or $0.48 per share.
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RYDER REPORTS HIGHER EARNINGS IN 1995
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Operations
Ryder Dedicated Logistics (RDL), the company's most rapidly growing
product line, set the pace for 1995, Burns said. The business unit reported
that sales of new business exceeded $300 million during 1995, revenue grew by
34%, total operating margin dollars increased for the year and product line
pretax earnings as a percentage of revenue improved sharply during the year
from their first-quarter lows, despite heavy spending on new capabilities. As
the year progressed, RDL added service offerings, including inventory
deployment, and a number of important new customers, including Whirlpool and
OfficeMax.
Ryder's largest product line, full service truck leasing, performed
well in 1995 despite an intensely competitive pricing environment, Burns said.
New lease sales for the year were among the highest in the product line's
history. Full service truck leasing revenue increased more than 10% in 1995.
Ryder Public Transportation Services had the best year in its history,
Burns said, with revenue up 10% and significantly higher pretax earnings,
compared with 1994. The unit's growth came from all of its business segments,
with particularly good performance by Ryder/ATE, which experienced significant
growth in demand for paratransit operations, and Ryder/MLS, which provides
public fleet maintenance and management services.
The company's international operations, while still accounting for a
relatively small portion of Ryder's business, expanded substantially in 1995,
Burns said, entering two new countries and growing in others through increased
sales of new business and the success of acquisitions completed in late 1994.
International Division revenue in 1995 increased 57% and pretax earnings also
increased substantially.
Revenue of Ryder's truck rental product lines was slightly higher in
1995 than in 1994, Burns reported. Performance of both truck rental product
lines was affected by the softening economy. In addition, the commercial truck
rental
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RYDER REPORTS HIGHER EARNINGS IN 1995
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product line was unfavorably impacted in the latter part of the year by lower
demand for commercial rental vehicles, resulting from shorter delivery times
for new lease vehicles. Responding to the economic environment, the company
reduced the size of both rental truck fleets during the second half of the year
and streamlined much of the administration of its consumer truck rental product
line.
Revenue and pretax earnings of the Automotive Carrier Division were
lower in 1995, Burns said, primarily as a result of a 32-day strike by the
International Brotherhood of Teamsters. In addition, high vehicle inventory
levels, which caused curtailed production near year end, reduced the number of
units shipped.
Outlook
Looking ahead, Burns said, "While we remain cautious about the
strength of the U.S. economy in 1996, which could bring some challenges in our
truck rental businesses, we feel confident that 1996 will be another good year
for Ryder. As often happens, however, we expect a relatively slow start,
because reduced levels of automobile production coupled with bad weather in
January could affect our performance in the first quarter.
"Long term, we are optimistic. Our strategic focus has sharpened. We
will reduce our capital expenditures in 1996 and allocate them even more
prudently, concentrating on the businesses with the greatest opportunities for
return, and we will continue working to improve our margins. Our contractual
businesses are performing very well, and we expect them to maintain the pattern
of growth in 1996 that they have demonstrated in recent quarters."
-o-
Note to Editor:
Ryder provides high-quality logistics and transportation solutions
throughout the United States and in Canada, the United Kingdom, Germany,
Poland, Mexico, Brazil and Argentina. Revenue in 1995 was $5.17 billion.
Assets at December 31, 1995 were $5.89 billion.
Ryder's stock is a component of the Dow Jones Transportation Average
and the Standard & Poor's 500 Index.
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RYDER SYSTEM, INC. AND CONSOLIDATED SUBSIDIARIES
REVENUE AND NET EARNINGS
Periods ended December 31, 1995 and 1994
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Fourth Quarter Twelve Months
------------------------------ ---------------------------
1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Revenue $1,345,447 1,242,752 5,167,421 4,685,603
========== ========= ========= =========
Earnings before cumulative
effect of change in
accounting $56,429 37,992 155,425 153,529
Cumulative effect of change
in accounting(a) - - (7,759) -
---------- --------- --------- ---------
Net earnings $ 56,429 37,992 147,666 153,529
========== ========= ========= =========
Average common and common
equivalent shares 79,687 79,063 79,370 78,768
========== ========= ========= =========
Earnings per common share:
Earnings before cumulative
effect $ 0.71 0.48 1.96 1.95
Cumulative effect of change
in accounting(a) - - (0.10) -
Net earnings $ 0.71 0.48 1.86 1.95
========== ========= ========= =========
</TABLE>
REVENUE AND EARNINGS BEFORE INCOME TAXES
LINES OF BUSINESS
Periods ended December 31, 1995 and 1994
(In thousands)
<TABLE>
<CAPTION>
Fourth Quarter Twelve Months
------------------------------ ---------------------------
1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Revenue:
Vehicle Leasing & Services $1,194,772 1,079,477 4,589,621 4,057,735
Automotive Carriers 154,690 168,033 594,446 645,402
Intersegment (4,015) (4,758) (16,646) (17,534)
---------- --------- --------- ---------
$1,345,447 1,242,752 5,167,421 4,685,603
========== ========= ========= =========
Earnings before income taxes:
Vehicle Leasing & Services $71,074 55,479 242,457 234,258
Automotive Carriers 28,310 15,215 43,144 50,078
Other (4,020) (6,234) (21,215) (23,817)
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$ 95,364 64,460 264,386 260,519
========== ========= ========= =========
</TABLE>
(a) Effective January 1, 1995, the company adopted Statement of Financial
Accounting Standards No. 116, "Accounting for Contributions Received and
Contributions Made," resulting in a charge of $7.8 million. The
cumulative effect reflects the after tax charge to establish a
liability for the present value of the company's total outstanding
charitable commitments as of January 1, 1995.
