MIAMI & AUSTIN, Texas - Ryder System, Inc. (NYSE: NYSE:R), a key player in supply chain and transportation solutions, in collaboration with Terminal Industries, has reported the success of a pilot program employing artificial intelligence to streamline warehouse yard operations. The initiative, which began in January at a Ryder e-commerce fulfillment center in City of Industry, California, has accurately processed over 10,000 truck detections, capturing license plates and Department of Transportation numbers with 99% accuracy.
The project utilizes Terminal’s computer-vision technology, which has been integrated with third-party databases to provide comprehensive vehicle profiles. This technology is designed to address common issues in yard management, such as manual recording of vehicle information, which can lead to increased costs and inefficiencies.
Karen Jones, CMO and head of new product development at Ryder, highlighted the unprecedented accuracy of the computer-vision technology in practical, real-world conditions. Max Constant, CEO of Terminal, emphasized the importance of real-world data in developing their technology, which aims to optimize yard operations in ways not yet seen in the industry.
According to the American Trucking Associations, trucks transport over 72% of all freight by weight in the U.S., but Terminal estimates that over 90% of yards lack the technology to operate efficiently, costing the industry up to $146 billion annually.
Following the success of the initial pilot, Ryder and Terminal launched a second pilot in July, using the technology on mobile tablets to automatically capture inventory at a Ryder facility in the Dallas-Fort Worth area. Additionally, RyderVentures, Ryder’s corporate venture capital fund, participated in Terminal’s seed funding round last summer, which raised $31 million.
The information in this article is based on a press release statement from Ryder System, Inc. and Terminal Industries.
In other recent news, Ryder Systems has been recognized for its resilient performance amid a challenging period for the freight industry. The company recently outperformed expectations in its Q2 2024 earnings, bolstered by strategic acquisitions such as Cardinal Logistics and Impact Fulfillment Services. However, Ryder Systems revised its full-year 2024 free cash flow forecast to negative $175 million to $275 million due to difficulties in the used vehicle sales and rental market.
In analyst updates, Baird has raised Ryder Systems' price target to $155 and maintained an Outperform rating, citing the company's potential for growth despite the freight recession. Stephens and Morgan Stanley also adjusted their price targets for Ryder Systems, while expressing caution due to uncertainties in the used vehicle and rental markets.
In addition to these financial developments, Ryder Systems has announced plans to acquire Pit Stop Fleet Service. This move aims to expand its mobile maintenance service, Torque by Ryder™, across 20 states and is expected to generate $24 million in gross revenue by 2025. Lastly, Ryder Systems has increased its quarterly cash dividend to $0.81 per share, marking the company's 192nd consecutive quarterly payment.
InvestingPro Insights
Ryder System, Inc. (NYSE: R) has been demonstrating its commitment to innovation and efficiency through its recent pilot program with Terminal Industries. This commitment is also reflected in the company's financial health and strategic decisions. According to InvestingPro data, Ryder boasts a market capitalization of $5.92 billion, indicating its significant presence in the industry. The company's P/E ratio stands at 12.25, suggesting that investors may find the stock reasonably valued in relation to its earnings. Moreover, Ryder has shown a commendable revenue growth rate of 10.33% in the most recent quarter, highlighting its ability to expand its operations and revenue streams effectively.
Among the InvestingPro Tips, two notable points stand out for Ryder. Firstly, the company's management has been actively engaged in share buybacks, a sign that they believe the stock is undervalued and are confident in the company's future performance. This could be an attractive signal for potential investors. Secondly, Ryder has a long-standing history of dividend reliability, having raised its dividend for 19 consecutive years. This track record speaks to the company's financial stability and commitment to returning value to shareholders.
For those looking for more insights, there are additional InvestingPro Tips available, which can be accessed on the InvestingPro platform. These tips offer deeper analysis and could provide investors with a more comprehensive understanding of Ryder's financial health and market position.
With Ryder's strategic investments in technology and its robust financial metrics, the company appears to be positioning itself for continued success in the logistics and transportation industry. For detailed analytics and more tips like these, investors can visit https://www.investing.com/pro/R.
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