Ryder Cuts 350 Employees Despite Solid Earnings

MIAMI (CBSMiami) – Bad news for some means good news for others.

The South Florida Business Journal reports shares of Miami-based Ryder System surged $3.05, or 8.8 percent, to $37.71 on Tuesday morning after the company beat second quarter earnings expectations and raised its forecast for all of 2012. However, Ryder (NYSE: R) also said it has cut its workforce by 350 employees and eliminated 100 open and temporary positions. The logistics company took a $7.1 million restructuring charge ($4.5 million after taxes).

A state website does not indicate any mass layoffs by Ryder in Florida this year.

The company raised 2012 earnings to $3.75 to $3.90 per share, up from the previous range of $3.65 to $3.85. Third quarter 2012 earnings are projected to be $1.15 to $1.22 per share, up 6 percent to 12 percent from $1.09 per share in the third quarter of 2011.

Ryder ranked fourth among New York Stock Exchange companies in percentage gain in late Tuesday morning trading, according to a Yahoo Finance table.

Ryder hit a 52-week high of $60.38 on July 27 last year and hit a low of $32.76 on July 12 this year.

Commenting on Ryder's outlook, Chairman and CEO Greg Swienton said, "Our timely responses, including many cost management actions throughout the company, as well as adjustments to our fleet, position us to perform effectively in an uneven economic environment. The actions we have already taken are forecast to benefit earnings by approximately $0.18 per share in the second half of this year. The commercial rental product line is now aligned with current market demand, in terms of fleet size, mix, and age. In used vehicle sales, we will continue to balance our focus on maximizing proceeds, while managing our vehicle inventory to appropriate levels. In both Supply Chain Solutions and Fleet Management Solutions, we anticipate continued solid contractual growth. The near-term economic conditions are likely to remain uneven and challenging, particularly for our transactional offerings. However, the long-term trends driving increased use of Ryder's industry leading transportation and logistics services remain solidly in place and offer very attractive growth opportunities."

Click here to see the full earnings release.

The South Florida Business Journal contributed to this report.