One of the nation’s largest trucking operations says its first quarter performance won’t be as good as first expected, and some are wondering if other trucking operations may report the same once first quarter financials are released.
Roadway Corp. says it expects to lose 8 to 12 cents a share for the first quarter of the year, which ended Saturday. This compares to analysts’ expectations the company would post a profit of 30 cents a share.
In a statement released last week, Roadway said, “Economic conditions, coupled with the traditionally slow post year-end freight environment. resulted in substantially lower business levels than anticipated. As a result, operating income is expected to be well below last year's levels.”
The company reported January tonnage levels at Roadway Express were at the lowest level since 1987. The company did say performance in February and the first weeks of March met expectations from an operating income standpoint and were on budget.
Roadway Corp. also said volume levels improved at New Penn Motor Express following the February closure of a major competitor. “These increases, however, were not sufficient to offset the tonnage declines New Penn experienced in January and the first half of February.
“The reduction of next-day capacity in the Northeast appears to have allowed New Penn to return to business levels that are currently equal to or greater than those of a year ago.”
Roadway Corp said Arnold Transportation Services, its truckload operation, has experienced business levels during the quarter similar to those of last year.
In contrast, another big LTL, Yellow Corp., says it plan to meet analysts' expectations of a profit of 11 cents a share for the first quarter.
For the remainder of the year, Roadway Corp says its operating results will be heavily dependent on a recovery in the general economy, but are expected to show year-over-year margin improvement.
“Assuming that underlying economic conditions improve and business volumes return to 2001 levels over the balance of 2002, the corporation expects its operating ratio, on a combined basis, to improve by one-half to one percent over last year.”
News of Roadway's lower than expected earnings sent shares of some trucking company stocks down a few percent points on Thursday, but many recovered the next day.
Roadway Corp. says it expects to lose 8 to 12 cents a share for the first quarter of the year, which ended Saturday. This compares to analysts’ expectations the company would post a profit of 30 cents a share.
In a statement released last week, Roadway said, “Economic conditions, coupled with the traditionally slow post year-end freight environment. resulted in substantially lower business levels than anticipated. As a result, operating income is expected to be well below last year's levels.”
The company reported January tonnage levels at Roadway Express were at the lowest level since 1987. The company did say performance in February and the first weeks of March met expectations from an operating income standpoint and were on budget.
Roadway Corp. also said volume levels improved at New Penn Motor Express following the February closure of a major competitor. “These increases, however, were not sufficient to offset the tonnage declines New Penn experienced in January and the first half of February.
“The reduction of next-day capacity in the Northeast appears to have allowed New Penn to return to business levels that are currently equal to or greater than those of a year ago.”
Roadway Corp said Arnold Transportation Services, its truckload operation, has experienced business levels during the quarter similar to those of last year.
In contrast, another big LTL, Yellow Corp., says it plan to meet analysts' expectations of a profit of 11 cents a share for the first quarter.
For the remainder of the year, Roadway Corp says its operating results will be heavily dependent on a recovery in the general economy, but are expected to show year-over-year margin improvement.
“Assuming that underlying economic conditions improve and business volumes return to 2001 levels over the balance of 2002, the corporation expects its operating ratio, on a combined basis, to improve by one-half to one percent over last year.”
News of Roadway's lower than expected earnings sent shares of some trucking company stocks down a few percent points on Thursday, but many recovered the next day.
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