Ryder System Inc., which recently acquired Hartford truck-leasing company Edart Inc., forecast sharply lower 2009 earnings today, citing a hefty estimated increase in annual pension costs and a weaker global economy.
For 2009, the Miami-based transporation management company expects earnings in the range of $2.60 to $3.30 per share, which includes an increase of 69 cents per share in annual pension expenses.
Excluding restructuring charges of 10 cents per share, Ryder predicted that adjusted 2009 earnings will range from $2.70 to $3.40 per share. Adjusted earnings totaled $4.49 per share in 2008.
The company estimated that full-year revenue will range from $5.4 billion to $6.2 billion.
Analysts, who generally exclude one-time items from their estimates, forecast 2009 earnings of $4.07 per share on revenue of about $6.1 billion.
For the first quarter, Ryder predicted earnings per share will range from 40 cents to 50 cents, compared with 96 cents in the first quarter of 2008. Ryder also attributed the weaker quarterly outlook to higher pension expenses and weaker market conditions.
Analysts surveyed by Thomson Reuters forecast first-quarter earnings of 80 cents per share.
“Clearly we face challenging headwinds that are directly related to global economic and market conditions,” said Ryder Chairman and Chief Executive Greg Swienton in a statement. “Chief among them is a significant increase in pension expense driven by poor performance in the overall stock market in 2008.”
At 11 a.m., Ryder shares traded at $33.25, down $1.28, or 3.7 percent. (AP)
