Ryder System Inc. Earnings Call Nuggets: Class A Order Market, Lease Growth
Class A Order Market
David Ross – Stifel Nicolaus: Greg we saw some softness in the Class A truck orders in the first quarter and I wanted to see I know that you guys have a mix of vehicles in your fleet, but was that reflected in your full service lease business not maybe being quite as strong as it could be, didn’t know if there was customers looking to take advantage last year, bus depreciation and then maybe they took some time off in the first quarter from ordering and you might see an acceleration later in this year. Could you just talk about I guess how you see the Class A order market reflecting Ryder’s CapEx in full server lease?
Gregory T. Swienton – Chairman and CEO: I think it certainly looks as though some customers or potential customers may have done some purchasing at the end of last year. I think that impact to us though may have been more regarding the commercial rental than for customers who may have been moving toward full service lease, so if there were customers last year that had been using rental equipment more heavily than last year because of the depreciation environment that they could take advantage of, bought their equipment and now is delivered. I think that may have had a bit of an impact a little bit on the rental. But I think for lease and for us, I don’t see a strong correlation necessarily between what had occurred among the OEMs who were manufacturing, compared to what we are doing because we’ve had again, good contractual lease sales and growth and organic growth in full-service leased units. So I would say that that trend pertains well for a pickup throughout this year, whether or not OEM production really accelerates or not. I think that for our value proposition to our customers. I think is going to remain very strong and because of cost and complexity, I think we’re well positioned and we expect growth in that product line to continue through this year and forward.
David Ross – Stifel Nicolaus: Very helpful. Then on the supply chain side, given your relationships with GM (NYSE:GM) and Toyota (NYSE:TM) specifically, have they come in at all or have you guys looked into the potential supply disruption from that plant explosion, given the (indiscernible) resin?
Gregory T. Swienton – Chairman and CEO: Yeah. I think that was one in Germany.
David Ross – Stifel Nicolaus: Yes.
Gregory T. Swienton – Chairman and CEO: John Williford, you want to comment if at all.
John H. Williford – President, Global Supply Chain Solutions: Sure. I mean, it’s pretty early. I know the OEMs are all looking at alternative sources of supply for those materials. We’re not forecasting any shortages that would affect our volumes at this time, but we’re certainly talking to the OEMs about that potential.
Anthony Gallo – Wells Fargo: You mentioned 700 unit growth in the leasing that was organic in the first quarter, can you remind us what it was in the prior quarter and then also is there a seasonal pattern to the lease growth?
Gregory T. Swienton – Chairman and CEO: Yeah, I think the 700 is an increase organically from the fourth quarter.
Robert E. Sanchez – President, Global Fleet Management Solutions: It was 1000 units up between the third and the fourth quarter.
Anthony Gallo – Wells Fargo: Is there a seasonal pattern there or as your book runs off in 2012, should any quarters be particularly stronger than the others, I just don’t know?
Robert E. Sanchez – President, Global Fleet Management Solutions: I am not sure we call it seasonal, maybe lumpier is a better word. You could have some quarters where it comes in a little bit stronger than others and that really just has to do with the timing of when customers decide to make decisions, because even if a vehicle terms out in January, they might extend it a few months before they make a decision. So you could have some variability in the lease growth just based on that.
Anthony Gallo – Wells Fargo: Then a different topic. You mentioned some strong growth and Dedicated and I understand that you’ve changed the reporting a bit, but if I remember correctly, the fourth quarter Dedicated saw some challenges, there’s one quarter of John’s magic is going on there or a little color what’s going on with Dedicated?
Robert E. Sanchez – President, Global Fleet Management Solutions: Go ahead John.
John H. Williford – President, Global Supply Chain Solutions: I like the phrase John’s magic. We made – we talked about having some specific challenges with specific customers that we’re working on in actually probably the third and fourth quarters last year and I think the DCC teams made a lot of good progress on those customers and between that and some growth, we’ve seen good revenue growth in DCC or the legacy DCC and even better profit growth.