Ryder Lowers 1Q Outlook

Ryder System Wednesday cut its first-quarter forecast, saying the ongoing recession has hurt its freight volumes and reduced demand.

Including restructuring costs of $8 million, or 12 cents per share, Ryder said it now expects a profit of 10 to 12 cents per share, while excluding those items, it forecasts a profit of 22 cents to 24 cents per share.

Ryder had previously predicted a 40- to 50-cents per share profit for the first quarter. It will report its earnings April 22.

“The protracted length and increased severity of this freight recession has resulted in reduced customer demand for new leases and an increased number of customers downsizing their fleets,” Ryder said.

“Customers are also driving significantly fewer miles with their existing fleets, which lowers Ryder's variable revenue and fuel gallons sold,” the company said in a statement.

Ryder said it anticipates the worsened economic environment to continue throughout the rest of the year.

Ryder is ranked No. 5 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.