Ryder System reported Q3/18 total revenue grew 17% to $2.2 billion, up from $1.8 billion a year earlier. Operating revenue was a record $1.7 billion, up 13% from $1.5 billion in Q3/17.

Commenting on the company’s third quarter results, Ryder Chairman and CEO Robert Sanchez said, “We are pleased to again deliver year-over-year pretax earnings growth, which was at the high end of our expectations. This quarter’s comparable pre-tax earnings improvement was driven by revenue growth in all segments and the benefit of cost actions taken earlier in the year. Third quarter pre-tax earnings grew by 6% despite used vehicle sales and depreciation headwinds of $18 million (17% of prior-year pre-tax earnings), and higher maintenance costs on certain older-model-year vehicles. During the quarter, used vehicle prices were stable, while our inventories remained at the bottom end of our target range.

Year-to-date capital expenditures increased to $2.3 billion in 2018, compared with $1.4 billion in 2017. The increase in capital expenditures reflects higher planned investments to grow and refresh the lease and rental fleets. Proceeds of $292 million, primarily from used vehicle sales, decreased 3%. Net capital expenditures (including proceeds from the sale of assets) were $2.0 billion in 2018, up from $1.1 billion in 2017.

“We delivered double-digit revenue growth with strong increases in all three business segments, benefiting from new outsourcing wins and a favorable freight environment. Ryder’s largest product line, ChoiceLease, grew organically by 5,600 vehicles year-to-date. We continue to successfully penetrate non-outsourced markets and are also seeing expansions with current customers. We are on track for another record sales year in 2018, driven by ChoiceLease and Dedicated Transportation Solutions, positioning us well for accelerating contractual revenue
growth.