Trucking and logistics management company Ryder System Inc. said Wednesday its first-quarter earnings plunged 88 percent as its fleet management business was hit by slowing commercial rental and used vehicle sales.
The company earned $6.8 million, or 12 cents per share, compared with $56.1 million, or 96 cents per share, in the same quarter a year ago.
Results from the latest quarter include a charge of $6.9 million, or 13 cents per share, related to restructuring. The charge mainly reflects an increase in cost estimates for actions taken in the fourth quarter of 2008, Ryder said.
Excluding this one-time charge, Ryder recorded income of 25 cents per share.
Revenue fell 22 percent to $1.2 billion from $1.54 million.
Analysts polled by Thomson Reuters, on average, expected a profit of 22 cents per share on revenue of $1.2 billion. Analyst estimates typically exclude one-time items.
Ryder said profit from its fleet management solutions unit fell 67 percent in the period. In addition to a steep drop in truck rentals and sales, the company also attributed the decline to higher pension expenses and lower contract leasing sales.
The company predicted that business will be weak through the end of this year, and suspended earnings projections citing economic uncertainty.