This copy is for your personal, non-commercial use only. T hose familiar yellow Ryder System rental trucks may be just a memory within a few years. In , with earnings lagging, Ryder sold its consumer truck-rental business. One of the provisions of the sale was that the Ryder name and yellow paint eventually be removed. Ryder without rental trucks? What's going on here? History, that's what. The sale was part of a thorough restructuring in which Ryder also jettisoned an automotive-carrier unit and an aviation-services company.
The oil crisis of prompted Ryder to purchase Toro Petroleum Corporation of Louisiana to ensure a steady fuel supply for its trucks, but the acquisition proved rash. The value of Toro's oil reserves dropped as oil prices fell a few months after the purchase. The truck leasing and rental businesses continued to borrow in order to finance an expanded fleet. Thus, Moody's Investors Service downgraded Ryder's rating on commercial paper in late The board of directors began to question James Ryder's ability to guide the future of the growing concern.
The recession of had taken a heavy toll on Ryder's vast contract carriage and automotive carriage operations, which were heavily dependent upon the welfare of the automotive industry.
Although Ryder's core business of truck leasing and rental was holding its own despite the hard times, company borrowing had gotten out of control.
Stockholders, displeased with the company's troublesome acquisitions from the early s, demanded a refocusing of attention back on Ryder's basic businesses.
In James Ryder, under pressure from the boardroom and his bankers, announced that he was seeking a "more professional manager" to run the still growing company.
In the summer of , after disposing of such unprofitable subsidiaries as Toro Petroleum and Miller Trailers, Inc. Ryder's successor was Leslie O. Barnes, former head of Allegheny Airlines. Barnes inherited a company that was tattered after weathering a great storm, and the year-old CEO was intent on whipping Ryder System back into shape. The debt-to-equity ratio was quickly pared from four-to-one to three-to-one.
Ryder Liftlease Inc. Refocused on its primary businesses, Ryder rebounded. Ryder's automotive carriage operations were profitable as a result of the industry's rebound and tighter financial controls. During the downturn in the automotive markets, Ryder's automotive contract carriage unit, representing 16 percent of Ryder System's turnover, made a profit. In the late s Ryder continued to grow internally and through acquisitions in the full-service truck-leasing business, in which the company continued to lead the continually expanding market.
According to Barnes, only 38 percent of the U. The vast majority of fleets were at least partially leased. Encouraged by the basic business's performance during the latter half of the s, Ryder System once again began to seek acquisitions in new areas.
Barnes, however, unlike James Ryder, was inclined to test out new ventures on a small scale before fully committing to them. In a parcel delivery service, Jack Rabbit Express, was acquired. Moreover, a small property and casualty reinsurance company, Federal Assurance Co. By the late s the one-way rental market was well-established. Ryder trailed U-Haul in this field, and in , a third major competitor, Jartran Inc. Jartran was an acronym for James A. Ryder Transportation.
James Ryder's new company became a thorn in the side of his former company. The feisty Ryder appeared in Jartran ads as "the man who invented truck rental," and his new vehicles resembled Ryder System's enough to spark a lawsuit.
Nevertheless, Jartran had trouble making a profit. Once again, it appeared that James Ryder had grown the company too big too fast.
By July Jartran had dumped its commercial leasing division, and the company was foundering. Ryder System, on the other hand, grew under the balanced leadership of Barnes and his new executive vice-president, M. Anthony Burns. In the early s, new tax laws encouraged diversification into new areas. Ryder began shopping for a financial services company in order to take full advantage of available tax credits.
Insurance was the obvious choice because of Ryder's existing insurance business. Hall and Co. Hall, however, was not interested in being acquired and maneuvered to avert a takeover. In October Hall announced its intentions to purchase Jartran, Ryder System's troubled competitor, opening up potential antitrust obstacles for a takeover. Hall also filed a number of suits against Ryder. Ryder System's pursuit of Hall continued through , and by August of that year Ryder System had boosted its holdings in Hall to 9.
Jartran was on its way to bankruptcy, but Hall had bought enough time to discourage Ryder System from acquiring any more Hall stock. In a severe recession shook the North American economy. While the majority of transportation companies were devastated, Ryder System's profits increased. Burns moved up to CEO, and soon proclaimed Ryder's intention to "be more forward-thinking, more risk-taking. By acquiring two new strategically located automobile carriage firms, Ryder improved its efficiency, reducing the number of trailers sent back empty.
Ryder System's longstanding desire to enter financial services was satisfied in when the company became an 80 percent partner in a pension fund specialist, Forstmann, Leff, Kimberly. The joint venture set up long term trusts for pension fund investors. Ryder also decided to revise its in-house business information systems and offer them for sale to other transportation companies.
The FMS segment provides full-service leasing and leasing with flexible maintenance options, commercial rental, and maintenance services of trucks, tractors and trailers to customers, principally in the United States, Canada and the United Kingdom. The SCS segment provides integrated logistics solutions, including distribution management, dedicated transportation, transportation management, last mile and professional services in North America. The DTS segment provides turnkey transportation solutions in the United States that include dedicated vehicles, drivers, management and administrative support.
Number of employees : 39 people. Sales per Business. Sales per region. Robert E. Rajeev Ravindran. Norman Brouillette. Kendra Phillips. Hansel Emory Tookes. Abbie J. Smith, Dr.
Members of the board. Tamara L. Robert A. Company contact information. Brand Portfolio. In partnership with. More brands of Ryder System, Inc. Sector Industrials.
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