Photo: Ryder System
Ryder System, one of the country’s largest transportation and and supply chain management firms, cut guidance today as the U.S. recovery stalls.The company now projects earnings for the second quarter to be between $0.90 and $0.95 per share, below previous forecasts for as much as $1.12.
Ryder attributed the bulk of the cut to weakness within its commercial fleet business. The Miami-based firm said it expected tepid demand to continue through the end of 2012.
But it also blamed high health care costs for its employees.
“We are responding with timely and appropriate business adjustments and cost management initiatives to address economic headwinds that are expected to continue through the remainder of the year,” Ryder Chief Greg Swienton said.
The news follows sluggish guidance out U.S. bellwether FedEx, which disappointed investors after the company beat quarterly expectations.
Shares in Ryder are down more than 13 per cent today.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.