Ryder Net Falls 88 Percent

Trucking and logistics management company Ryder System on April 22 reported an 88 percent plunge in first-quarter earnings as the recession and falling cargo volume spread to its fleet management business.

The company earned $6.8 million in the quarter, compared with $56.1 million a year earlier. Revenue dropped 22 percent to $1.2 billion from $1.54 billion. The quarter also included a $6.9 million restructuring charge.

Ryder said profit from its fleet management unit fell 67 percent in the period. The company predicted business would be weak through the end of 2009, especially affecting the fleet management and supply chain segments of the business. Ryder also suspended earnings projections, citing economic uncertainty.

Ryder's full-service lease customers are operating fewer leased units and driving them fewer miles than the company had predicted, Ryder Chairman and CEO Greg Swienton said. The supply chain solutions and dedicated contract carriage offerings performed "largely in line with our already lowered expectations," he said.

In addition to a steep drop in truck rentals and sales, the company attributed the decline to higher pension expenses and lower contract leasing sales.

Contact Marcy Frank at mfrank@joc.com .