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Talked about Norfolk Southern and that is for the month but the best performing stock among the transports today is Ryder System the trucking company's fourth quarter earnings.
Came in ahead of analyst estimates -- do logistics as well I'm joined now by -- -- Ryder System executive chairman and retiring CEO.
Steve Fox Business exclusive from Miami's.
So it's a little bittersweet here -- your -- you know much much.
Much deserved retirement here as you move on -- you have Gregg always been a very good friend of fox business and we really appreciate that so.
Welcome to the show one last time and you can come on anytime after that to give your perspective to just say you know.
Well thank you very much if you have an interest in my opinion from afar you can always let me know.
Okay same here all right let's get right to the number you're -- quarter your last one looks pretty darn good and I think that's terrific even though you're now the chairman and not the CEO but.
Looking at what happened here you beat on both the top and the bottom line.
-- this is just for people who don't know rentals leasing and logistics which portion of this I broke the numbers this time.
This quarter it was largely driven by commercial rental.
So there's seem to be -- a positive for the demand level.
We've right sized our fleet over time -- the utilization was good the pricing was good.
And you also have to take into account that with the hurricane sandy recovery.
That added a bit as well we probably sold a few more.
Additional use trucks so.
I'd say it.
The lead this time was in rental and that can be good or bad sometimes when let rental is strong it could be because customers have been a bit hesitant.
About signing the long term contracts.
And that's what we want to make sure we keep that momentum is well so.
Led by rental car.
Leasing was strong leasing and maintenance and also our supply chain logistics activity with new contracts was also -- very strongly so overall good led by rental.
With the cash that you can have coming in where -- wanna spend that 2013 what do you think the company should spend it.
2013 is going to still be another significant year on capital equipment and that's we're really -- the vast majority of our capital expenditures -- Primarily when customers.
Need equipment and they sign a contract then and only then we will commit with the OEM and purchase the equipment and lease it and maintain it for the customer.
So that's still going to be in the range of -- at least a billion and a half dollars of of equipment in in 2013.
As a heavy replacement cycle for equipment.
We won't need to buy as much rental equipment in 2013.
Because we have high spending last few years so that'll come down but in -- still pretty healthy capital spend for reinvestment in the in the new fleets.
I just want people to look the lower third here the senate does have enough votes to suspend the debt limit for the next couple of months the debt limit certainly I'm sure -- over your head Greg gonna get your comment on that quickly.
Well I think it weighed over a lot of of consumers and customers as well in fact when you saw this softness of GDP in the fourth quarter.
I think all of that talk about sequestration.
And then what would happen with taxes and what would happen with the debt limit.
What we really have to be concerned about my feeling is you really gotta take care of the spending issue we don't have a revenue problem.
We have a spending problem in government in you can't continue to raise that debt limit.
But -- quickly -- -- -- -- however I have to push on this and then we've got to go but when the government cut spending in this most recent GDP report we reverted to minus 110 of a percent GDP and everybody said.
And the government said that than the country's not growing and we're not doing well what we cut government spending there.
But think about where some of the government spending or concern about government spending one it was look at the reports from the defense contractors.
I think the government was already signaling to them that they were holding off they start stop spending and there's a trickle down effect.
That that's one spot that you take it very suddenly and that was drastic I'm talking about dealing with the longer term issues of entitlements and all the other spending.
Which we all know here Fox Business we have push for as well at some point we've got to do it.
Greg congratulations on your retirement as we look toward that -- sweat and Ryder System executive chairman and retiring CEO.
During his tenure the stock up 230%.
Thanks Greg good luck.
We will be.
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