One of the leading providers of integrated logistics and transportation solution, Ryder System Inc. (R) recently released its 2011 Corporate Sustainability Report. The company’s sustainability report underpins policies that prioritize providing efficient transportation solutions to address complex logistic requirements of various companies.
The report provides detailed information about the company’s steps toward improving its business operations as well as efforts to evolve as an environmental friendly transportation provider. It outlines Ryder’s move toward maintaining high standards for corporate governance, supply chains solutions and investments in innovative technology for environmental protection.
In the report, the company also disclosed its plans for deploying a fleet of 240 natural gas vehicles and building natural gas vehicle maintenance infrastructure in California, Arizona, and Michigan. Ryder is targeting emerging markets for fuel-efficient vehicles under projects like SANBAG (San Bernardino Associated Governments) and alliance with U.S.-based publishing and logistic company Source Interlink to provide natural gas vehicles. This is consistent with its Flex-to-Green lease program that promotes utilization of alternative fuel vehicles to its customers.
We believe that the broad-based report will provide the company’s investors as well as other related parties with an in-depth knowledge about its on-going operations and future prospects.
However, we remain concerned about the challenging economic environment surrounding its operations despite its strong performance. Further, heavy capital expenditures, a distressed cash position, lower demand on tighter truckload market and competition from the likes of AmeraMex International, Inc. (AMMX) are also expected to create significant headwinds for the company.
Currently, we have a long-term Neutral recommendation on Ryder System. For the short term (1–3 months), the stock retains a Zacks #3 Rank (Hold).Read the Full Research Report on R
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