Monday, 8 October 2007

Another transport warns

Ryder lowers its quarterly earnings view due to poor demand
By Christopher Hinton
Last Update: 8:06 AM ET Oct 8, 2007

Ryder System Inc. (R) on Monday lowered its third-quarter earnings guidance to a range of $1.12 to $1.14 a share from $1.20 to $1.23 a share, citing soft demand for its commercial rentals, as well as lower pricing and higher carrying costs associated with used vehicles. "Economic conditions have softened considerably in more industries beyond those related to housing and construction," Ryder said in a news release. The company added it expects softer economic conditions to continue through the fourth quarter, and lowered its full-year forecast to a range of $4.10 to $4.15 a share from $4.30 to $4.35 a share. Shares closed Friday at $49.25
Just 2 weeks ago Fedex and Knight transportation gave profit warnings. At that time Kinght warned of:
"an industry-wide drop in freight and excess truckload capacity"

The statement from Knight is supported by that highlighted in bold above from Ryder Systems. Both point to a continued slowing in US domestic demand.