Ryder Re-Brands Dedicated Segment - Analyst Blog
March 06 2013 - 1:30PM
Zacks
One of the leading providers of integrated logistics and
transportation solutions, Ryder System Inc. (R)
has is re-launched its Dedicated Contract Carriage segment. The
segment will now be known as Ryder Dedicated.
Dedicated Contract Carriage accounted for approximately 10% of
Ryder’s business. The business provided equipment, maintenance and
administrative services of a full service lease with drivers and
additional services.
The additional services include route planning and scheduling,
fleet sizing, safety, regulatory compliance, risk management and
technology and communication systems support. It also includes
on-board computers and other technical support. However, in 2012,
the segment was merged with Ryder’s Supply Chain Solutions
following a restructuring of the internal reporting system.
In addition to re-branding, Ryder has complemented its Dedicated
business with Transportation Management services. This new
integrated solution will help reduce empty miles and lower
transportation expenditures for customers.
Apart from segmental restructuring, the company is taking
several other strategic developments under its wings. Ryder
continues to invest in commercial rental and leased vehicles. In
addition, the company also invests in maintenance technology as
well as sales and information technology.
However, we remain concerned about the challenging economic
environment surrounding its operations. Further, heavy capital
expenditures, tighter truckload capacity and competition are
expected to create significant headwinds for the company.
The stock retains a Zacks Rank #2 (Buy).
Other Stocks
Among the other related companies, we believe TAL
International Group, Inc. (TAL), American Railcar
Industries, Inc. (ARII) with a Zacks Rank #1 (Strong Buy)
and Air Lease Corporation (AL) with a Zacks Rank
#2 (Buy) are worth considering.
AIR LEASE CORP (AL): Free Stock Analysis Report
AMER RAILCAR (ARII): Free Stock Analysis Report
RYDER SYS (R): Free Stock Analysis Report
TAL INTL GRP (TAL): Free Stock Analysis Report
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