Skip to main content

Ryder Profit Drops 88%, Beats Expectations

Ryder Systems announced an 88% plunge in first-quarter earnings, but still beat analysts' expectations.

Trucking and logistics management company

Ryder Systems


entered a stall in the first quarter, suffering an 88% drop in first-quarter earnings on slower commercial vehicle rentals and used vehicle sales.

Despite the plunge in profits and a move by the company to suspend issuing earnings forecasts, Ryder shares grew 9% to $26.53 in afternoon trading, as the company exceeded analysts' expectations.

Revenue dropped 22% to $1.2 billion from $1.54 billion, while net profit fell to $6.8 million, or 12 cents a share. Excluding a restructuring charge of $6.9 million, or 13 cents a share, earnings were 25 cents a share, or 3 cents higher than the projections of analyst polled by Thomson Reuters.

While the company halted forecasts -- citing the uncertainties in the economy -- executives predicted the business will remain weak throughout the year.

Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.