Monday's Winners & Losers
Ryder's (R) shares fell 7.8% to $45.42 after the truck renter lowered its earnings forecast for the third quarter, primarily because of soft results in its U.S. Fleet Management Solutions segment.
The company now expects adjusted profits of $1.12 to $1.14 a share for the quarter, down from the previous range of $1.20 to $1.23. Ryder believes economic conditions will remain sluggish through the fourth quarter, and it cut its full-year earnings outlook to a range of $4.10 to $4.15 from the prior $4.30 to $4.35 estimate.
Real estate development company St. Joe (JOE) dropped after saying it would make moves to lower its costs, including job cuts, the elimination of its dividend and a reduction in capital spending. Additionally, St. Joe plans to shed some of its assets, including the Sunshine State Cypress Mill, certain land parcels with commercial entitlements and about 100,000 acres of rural land.
About 260 workers, particularly in project development and related support staff, will be either eliminated or transferred between now and the end of 2008. St. Joe expects to take a charge of roughly $7 million for severance benefits.St. Joe also plans to record charges of $25 million to $30 million in the third quarter for contract-termination costs, the writeoff of capitalized costs at certain projects, the impairment of completed spec homes in several communities and the writeoff of goodwill related to Sunshine State Cypress Mill. St. Joe was down 0.6% to $33.95. AK Steel (AKS) reached an agreement with a group of retirees from its Middletown Works in Ohio to settle a lawsuit stemming from the company's initiatives in 2006 to reduce its retiree health care costs. The agreement covers about 4,600 current Middletown Works retirees.
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