“Market conditions related to COVID-19 troughed in April for Ryder’s rental, supply chain automotive, and used vehicle sales businesses, and conditions improved sequentially thereafter,” Ryder said. In total, Ryder estimates that the impact from the pandemic was significant in the second quarter. Ryder did say that the curve of its business was similar to what a lot of trucking companies saw: a “trough” in April, with conditions improving afterward. Ryder already has prepared for that to some degree, writing down the value of its inventory in the second quarter based on expectations of the residual value of the vehicles.
“Although we saw stronger than expected volumes in used vehicle sales in both the retail and wholesale markets, we expect pricing pressure to continue through mid-2022,” the statement said. The company’s calendar had put that recovery at mid-2021.
#Ryder writedown driver#
Used vehicle sales is a key financial driver for Ryder, and the earning statement said a recovery in the used vehicle market is now not expected until 2022. The company’s discussion in its earning statement about the impact of the pandemic is sobering. The GAAP estimate of a $1.14 loss was better than consensus by $0.22.īut revenue of $1.9 billion was $70 million less than consensus estimates and was also down 16% year-on-year from the second quarter of 2019.
Its non-GAAP earnings per share of negative $0.95 beat Wall Street consensus by $0.36. The truck leasing and supply chain company did better than expected, according to SeekingAlpha in at least one key measurement. In an earnings season full of several trucking companies coming through the second quarter better than expected, the earnings report of Ryder was a reminder of how tough the landscape has been.
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