Ryder Cuts First-Quarter Forecast

Ryder (R Quote) expects to miss Wall Street's earnings expectations for the first quarter, as the slowing economy has led to weaker vehicle rentals and soft used truck sales.

The company expects to earn 13 cents to 17 cents a share in the quarter. Eight analysts polled by Thomson Financial/First Call are calling for the company to earn 20 cents. Ryder earned 33 cents in the year-ago period.

"The profitability of our fleet management and supply chain solutions businesses is being affected by a further deterioration in the economy,'' the company said in a statement. "In our last quarterly earnings report, we outlined the significant steps we are taking to transform the company, and we continue the important work of exploring all possible shareholder value-enhancing strategies at all levels of Ryder."

The company said it was "premature" to change its second-quarter estimate of 45 cents, but Ryder said it will have a more complete assessment of the outlook when it reports first-quarter earnings on April 19.

Shares of Ryder, which is based in Miami, lost 25 cents, or 1.3%, to $18.60 in New York Stock Exchange trading Thursday.