Ryder System Inc. has announced it forecasts 2003 earnings to be in the range of $1.95 to $2 per diluted share. This represents an increase of about 12% over the company's current guidance for 2002
of $1.74 to $1.78 per diluted share, excluding a $.30 charge for a change in accounting principle related to goodwill.
The full-year 2002 guidance also reaffirms the low end of management's earlier fourth quarter estimate of $0.48 to $0.52 per diluted share. The fourth quarter estimate includes the effect of severance charges of $6.8 million or $0.07 per diluted share related to job cuts in the company's Supply Chain Solutions business segment and Central Support Services.
"We expect continued softness in 2003 with prospects for modest improvement during the second half of the year," said Gregory T. Swienton, Ryder's chairman, president and chief executive officer. "Therefore, we are conservatively forecasting Ryder's overall 2003 revenue to remain essentially unchanged from 2002, despite some expected improvement in certain areas of the business such as commercial truck rental and the company's European operations."
Commenting further, Swienton said, "Our strategic process improvement and cost management actions first begun in 2001 have helped Ryder meet forecasted earnings during difficult times. We've been building the long-term foundations of a stronger Ryder that can deliver a more cost-competitive and value-rich solutions set. Our actions in 2003 are intended to bridge an expected earnings gap resulting from a pension expense increase of approximately $56 million, which was caused by market conditions. The cumulative effect of actions we've taken over the past several years will enable Ryder to optimize its performance and drive improvement to the bottom line as the economy rebounds."
Ryder provides logistics, supply chain and transportation management solutions worldwide. Ryder's product offerings range from full-service leasing, commercial rental and programmed maintenance of vehicles to integrated services such as dedicated contract carriage and carrier management.
For more information on Ryder System Inc., visit www.ryder.com.