Ryder System Inc. (R: Quote) is losing ground in pre-market trading on lowered guidance. Shares are down $4.48, or 11 percent, to $36.27.
Ryder, which provides transportation and supply chain solutions, said its Fleet Management Solutions business during the second quarter was hurt by reduced demand for the commercial rental product line, and actions taken to reduce used vehicle inventories.
The company also cited surprisingly high medical benefit costs that are likely to reduce earnings by about $0.05 per share in the quarter.
Miami, Florida-based Ryder now expects second quarter earnings of $0.90 to $0.95 per share, down from its prior guidance of $1.07 to $1.12 per share.
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by RTT Staff Writer
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