Ryder profit beats Wall St view

Truck leasing and logistics company Ryder System Inc (R.N) forecast quarterly and full-year profit well below analysts' forecasts and said it expected no economic recovery in 2009, sending its shares down nearly 5 percent.

The downbeat outlook came as the company reported better-than-expected fourth-quarter profit.

"Clearly we face challenging headwinds that are directly related to global economic and market conditions," Chief Executive Greg Swienton said in a statement. "Chief among them is a significant increase in pension expense driven by poor performance in the overall stock market in 2008."

Ryder posted a fourth-quarter net profit of $10.6 million, or 19 cents per share, down from $71.9 million, or $1.24 a share, a year earlier.

Excluding one-time items, Ryder earned $1.09 per share, 6 cents ahead of analysts' forecasts, according to Reuters Estimates.

Sales fell 18 percent to $1.37 billion. Analysts had expected $1.55 billion.

Miami-based Ryder said it expected lower commercial rental and used vehicle sales this year and that lower auto production would also hurt results, partly offset by cost and job reductions.

In a presentation to analysts, the company said further contraction of the U.S. economy was possible. It expects total revenue for 2009 to be down 10 percent to 16 percent.

For the first quarter, Ryder said it expected to earn 40 cents to 50 cents per share. Analysts were expecting 57 cents.

Ryder also said higher pension expenses would reduce 2009 profit. Its 2009 earnings-per-share forecast of $2.60 to $3.30 includes a pension expense of 69 cents and restructuring costs of about 10 cents. The analysts' average outlook was $4.06.

Shares of Ryder were down 5.2 percent at $32.72 in early New York Stock Exchange trade.