Celadon Group Inc. said this month's ruling by the 9th U.S. Circuit Court of Appeals Court in San Francisco that Mexican-manufactured trucks could not move freight between borders will reduce its 2003 earnings by roughly 20 cents per share.
Last month, the truckload carrier provided guidance regarding the 2003 calendar year, with an earnings range of $1.10 to $1.20 per diluted share. That guidance was based on an assumption of a buildup to 300 Mexican drivers by December 2003. Of that amount, about 100 units were to be EPA-compliant Mexican tractors, now operated by Jaguar, Celadon's Mexican affiliate, and the balance Mexican drivers in U.S.-plated tractors.
Based on the court's ruling, the 100 Mexican tractors will not be permitted to transport freight to the United States at this time, and therefore the company expects the buildup to be 200 U.S. tractors with Mexican drivers during the 2003 calendar year.
When combined with increased oil prices, the company has modified its earnings to 90 cents to $1 per diluted share.
Last month, the truckload carrier provided guidance regarding the 2003 calendar year, with an earnings range of $1.10 to $1.20 per diluted share. That guidance was based on an assumption of a buildup to 300 Mexican drivers by December 2003. Of that amount, about 100 units were to be EPA-compliant Mexican tractors, now operated by Jaguar, Celadon's Mexican affiliate, and the balance Mexican drivers in U.S.-plated tractors.
Based on the court's ruling, the 100 Mexican tractors will not be permitted to transport freight to the United States at this time, and therefore the company expects the buildup to be 200 U.S. tractors with Mexican drivers during the 2003 calendar year.
When combined with increased oil prices, the company has modified its earnings to 90 cents to $1 per diluted share.
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