USFreightways Corp. said it expects earnings from operations for the first quarter, which ended April 5, 2003, will be in the range of 10- to 16-cents per share instead of the 22- to 30-cent guidance presented earlier.
Samuel K. Skinner, chairman, president and chief executive officer said, the lower results will be affected by three significant and unusual events.
-- USF Red Star and USF Dugan's operating earnings have been impacted by severe weather in their service territories, affecting earnings by about three cents per share.
-- Changes currently underway at USF Red Star. The new management is in the process of phasing out certain low yield business from one of its largest customers and withdrawing from certain markets. While management is eliminating costs associated with these revenues, the timing of the reduction of costs trails the revenue loss for a period of time.
The company anticipates recording a charge of up to four cents per share for the write-down of accounts receivable from Fleming Cos. Inc., which recently filed for bankruptcy.
"Absent these three factors, our results would have been in the range of our earlier guidance," Skinner said.
USFreightways Corp. provides a full range of supply chain management services, offering high-value transportation solutions across North America through a network of independently operated companies that compete collectively.
Samuel K. Skinner, chairman, president and chief executive officer said, the lower results will be affected by three significant and unusual events.
-- USF Red Star and USF Dugan's operating earnings have been impacted by severe weather in their service territories, affecting earnings by about three cents per share.
-- Changes currently underway at USF Red Star. The new management is in the process of phasing out certain low yield business from one of its largest customers and withdrawing from certain markets. While management is eliminating costs associated with these revenues, the timing of the reduction of costs trails the revenue loss for a period of time.
The company anticipates recording a charge of up to four cents per share for the write-down of accounts receivable from Fleming Cos. Inc., which recently filed for bankruptcy.
"Absent these three factors, our results would have been in the range of our earlier guidance," Skinner said.
USFreightways Corp. provides a full range of supply chain management services, offering high-value transportation solutions across North America through a network of independently operated companies that compete collectively.
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