SOURCE: Ryder System, Inc.

October 08, 2007 07:55 ET

Ryder Revises Earnings Outlook

MIAMI, FL--(Marketwire - October 8, 2007) - Ryder System, Inc. (NYSE: R) today revised its earnings forecast primarily due to lower expected results in its U.S. Fleet Management Solutions (FMS) business segment. Economic conditions have softened considerably in more industries beyond those related to housing and construction. Consequently, freight and shipment levels have weakened to a greater extent than previously anticipated. The impact to earnings is primarily driven by softer-than-anticipated demand in the commercial rental product line, as well as from lower pricing and higher carrying costs associated with used vehicles. As a result, the Company revised its comparable third quarter 2007 earnings per diluted share (EPS) forecast to a range of $1.12 to $1.14, down from the previous EPS range of $1.20 to $1.23. Comparable third quarter 2006 EPS were $1.12.

Additionally, the Company expects a third quarter gain of approximately $10 million from the sale of a property. The gain is expected to be more than offset by restructuring charges of approximately $12 million in the third quarter. These charges were incurred in connection with a restructuring plan involving the elimination of approximately 300 positions across various business segments and global geographies. The majority of the recurring positive financial impact from these actions is expected to benefit results in 2008.

Reported third quarter 2007 GAAP EPS are expected to range from $1.09 to $1.11, which includes a $0.03 net restructuring and other charge, as previously noted. Reported third quarter 2006 GAAP EPS were $1.06, which included a $0.06 pension accounting charge.

The Company anticipates softer economic conditions to continue through the fourth quarter. In view of these conditions, the Company is revising its comparable full-year 2007 EPS forecast to a range of $4.10 to $4.15, down from the previous EPS forecast range of $4.30 to $4.35. The revised full-year EPS forecast represents an improvement from comparable EPS in the prior year of $3.99. Reported full-year 2007 GAAP EPS are forecast to be in the range of $4.07 to $4.12, which includes the previously discussed charges from restructuring and other items. Reported full-year 2006 GAAP EPS were $4.04, which included a net $0.05 charge from tax law changes and a pension accounting charge.

                          About Ryder

Ryder provides leading-edge transportation, logistics, and supply chain management solutions worldwide. Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index. Ryder ranks 362nd on the Fortune 500 and 1,458th on the Forbes Global 2000. For more information on Ryder System, Inc., visit www.ryder.com.

Note Regarding Forward-Looking Statements: Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, among others, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to customer acceptance or competition, customer retention levels, unexpected volume declines, loss of key customers in the Supply Chain Solutions (SCS) business segment, our failure to successfully implement sales growth initiatives in our Fleet Management Solutions (FMS) business segment, unexpected reserves or write-offs due to the deterioration of the credit worthiness or bankruptcy of certain customers, changes in financial, tax or regulatory requirements or changes in customers' business environments that will limit their ability to commit to long-term vehicle leases, changes in economic and market conditions affecting the commercial rental market or the sale of used vehicles, the effect of severe weather events, labor strikes or work stoppages affecting our or our customers' business operations, adequacy of accounting estimates and accruals particularly with respect to pension, taxes and revenue, changes in general economic conditions, changes in fuel prices, availability of qualified drivers, our ability to manage our cost structure, new accounting pronouncements, rules or interpretations, changes in government regulations including regulations regarding vehicle emissions and the risks described in our filings with the Securities and Exchange Commission. The risks included here are not exhaustive. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Note Regarding Non-GAP Financial Measures: This news release includes certain non-GAAP financial measures as defined under SEC rules. Additional information regarding non-GAAP financial measures can be found in our investor presentation for the quarter and in our reports filed with the SEC, which are available in the Investors area of our website at www.ryder.com.

Contact Information

  • Contacts:
    Media:
    David Bruce
    (305) 500-4999

    Investor Relations:
    Bob Brunn
    (305) 500-4053