Ryder warns that first-quarter profilts won’t meet targets
MIAMI (April 7) — Ryder System Inc. said its first-quarter earnings will be lower than expected because of higher costs in its logistics unit.
The Miami-based truck leasing company said yesterday that it expects per-share profit of 30 cents to 35 cents. Analysts had estimated profits at 42 cents per share.
“While our first-quarter results are disappointing, it is important to remember that Ryder’s first quarter is always our weakest and is, therefore, not necessarily an indicator of our performance for the remainder of 1999,’ said Ryder chairman and CEO M. Anthony Burns.
Ryder, which has a worldwide fleet of 170,000 trucks, earned 50 cents a share in the year-earlier quarter. Its total revenue in 1998 was $5.2 billion US.
Burns said Ryder’s logistics operations were hurt by costs for starting up new businesses, for marketing of new global initiatives, and disappointing results in some markets.
He added that business in Europe and South America was disappointing, but the company would respond “aggressively’ to improve.
Ryder stock closed down $1.50 at $24, off 8% since the start of the year.
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