Winners & Losers

Return to Article

Ryder System Shares Plunge On Lowered Outlook

The Associated Press

NEW YORK (AP) — Shares of Ryder System Inc. plunged Wednesday after the truck leasing and logistics company cut its first-quarter earnings prediction, blaming broader economic conditions that are cutting into demand.

The stock fell $5.45, or 18.4 percent, to $24.11 in afternoon trading. Shares have ranged between $19 and $76.64 in the past year.

Ryder now expects a profit of 10 cents to 12 cents per share in the first quarter, including about 12 cents per share of restructuring costs. Excluding those one-time charges, it predicts a profit of 22 cents to 24 cents per share.

Analysts polled by Thomson Reuters, whose estimates typically exclude one-time items, expect a profit of 46 cents per share for the quarter.

Ryder said earlier Wednesday that the long and severe recession has muted customer demand for new leases on trucks, and has led other customers to downsize their fleets. Customers are also cutting back on driving — reducing fuel sales, Ryder said.

The company said it expects the economy to stay weak for the rest of this year.

KeyBanc Capital Markets analyst Todd Fowler reduced his first-quarter and full-year predictions following the announcement.

Fowler said he has renewed concerns about the stock given the company's predictions about leasing demand, and will consider adjusting his rating when the company reports earnings later this month.