Miami-based Ryder System Inc. is promoting two key executives as it initiates a large-scale stock re-purchasing plan.
Anthony “Tony” Tegnelia has been named president of Ryder’s U.S. fleet management solutions (FMS) division. Vicki O’Meara has been promoted to president of the company’s U.S. supply chain solutions (SCS) operation. Both are tasked with “accelerating profitable growth” within both groups, according to Ryder’s chairman & CEO Greg Swienton, largely by capitalizing on revenue growth and cost-cutting moves.
One reason profits are getting such a high profile is due to Ryder’s new share re-purchase program, under which the company is authorized to repurchase up to $175 million of outstanding Ryder common stock over a period not to exceed two years. Based on Ryder's current stock price, $175 million represents approximately 8% of the company’s total shares outstanding, said outgoing CFO Tracy Leinbach.
“This program is consistent with our commitment to deliver value to shareholders through sales growth, margin improvement and a more efficient capital structure,” Leinbach said. “[Ryder] remains well positioned to grow the business and take advantage of strategic opportunities.”
Also, Ryder is still projecting profits for the third quarter this year, reaffirming its previously announced earnings forecast range of 90 to 95 cents per share. “This forecast range includes any potential impacts from hurricanes Katrina and Rita and the recently announced bankruptcy filing of its customer Delphi Corporation,” said Swienton.