Ryder Cuts Forecast, Citing Slowing Economy
Truck leasing and logistics company Ryder System cut its third-quarter and full-year profit forecast Monday, saying industries beyond the housing sector are starting to show signs of slowing.
Ryder , whose shares fell 8 percent in pre-market trading, said, "Economic conditions have softened considerably in more industries beyond those related to housing and construction."
It cited softer-than-expected demand in its commercial rental product lines and lower prices for used vehicles.
Ryder said it expects earnings of $1.12 to $1.14 a share for the third quarter before one-time items, down from its earlier forecast of $1.20 to $1.23.
It also said it would have a $10 million gain from the sale of property, and $12 million in restructuring charges related to the elimination of some 300 jobs. Including one-time items, it expects third-quarter profit of $1.09 to $1.11 per share.
The company lowered its 2007 earnings forecast to $4.10 to $4.15 a share before special items, down from its prior view of $4.30 to $4.35.
The housing market has slowed markedly over the past two years amid higher interest rates and cooler demand.
Investors have been watching closely for any sign of slowing in the broader economy.
Ryder shares fell to $45.25 in pre-market trading, down $4 from a Friday close at $49.25 on the New York Stock Exchange.
In regular NYSE trading, the shares have been as low as $47.28 and as high as $57.70 over the past 52 weeks.