Swift Lowers Fourth Quarter Earnings Expectations
December 20, 2013
Trucking company Swift Transportation has announced it expects adjusted earnings per share to range between 33 and 36 cents per share for the fourth quarter of 2013, compared to its previous expectation of 40 cents per share.
It says the lower rates are primarily related to four factors.
“During the fourth quarter, Swift has experienced unfavorable accident claims development, specifically related to our current year claims and to a lesser extent on prior year claims, resulting in a negative impact on insurance and claims expense of approximately $12 million, or 5 cents per chare,” the company said.
The second headwind it says it experienced during the quarter was associated with new fleet start-up and integration related costs.
“During the quarter, Swift was awarded several sizable new dedicated contracts. These new dedicated contracts in addition to the ongoing integration of both Central Refrigerated Services and a new 300 truck owner-operator fleet during the quarter resulted in higher than expected start-up and integration related costs,” Swift said in a release.
The final two variables Swift says it experienced during the quarter were the severe weather experienced throughout the United States and the negative impact associated with the recent changes to the hours of service regulations, both of which negatively effected Swift's operations, including overall miles, utilization, and engine idle time.
“Swift remains committed to continue to focus its efforts on training all driving and non-driving personnel on these new regulations, including the more than 3,000 new employees and owner operators brought into the Swift team from the expansions noted above, with the goal of minimizing the utilization and mileage impact on a go forward basis,” the company said.