USF Corp. said its earnings for the second quarter of 2003 will be in the range of $0.24 - $0.34 per diluted share, compared to guidance of $0.40 - $0.50 per diluted share given in late April.
The key factors leading the company to lower its previously issued earnings guidance include:
-- Slower than expected business activity
-- Pricing pressure in the regional trucking companies
-- A greater than anticipated fall off in the logistics business segment
While business activity was encouraging in March and April, freight movement slowed in May and continued at a reduced rate into the first part of June, the company said.
Although there are recent signs that volume is picking up in the western parts of the United States, both the Midwest and Southeast remain soft. The diminished levels of freight have caused pricing in the company's core overnight regional LTL sector to become highly competitive.
USF expects revenue in the logistics segment to decline about 3-5% compared to last year's second quarter. This is due primarily to lower activity at two of its largest customers, including Fleming Cos., which has filed for bankruptcy. Of the four major Fleming distribution centers serviced by USF, all but one closed by the end of the second quarter.
The key factors leading the company to lower its previously issued earnings guidance include:
-- Slower than expected business activity
-- Pricing pressure in the regional trucking companies
-- A greater than anticipated fall off in the logistics business segment
While business activity was encouraging in March and April, freight movement slowed in May and continued at a reduced rate into the first part of June, the company said.
Although there are recent signs that volume is picking up in the western parts of the United States, both the Midwest and Southeast remain soft. The diminished levels of freight have caused pricing in the company's core overnight regional LTL sector to become highly competitive.
USF expects revenue in the logistics segment to decline about 3-5% compared to last year's second quarter. This is due primarily to lower activity at two of its largest customers, including Fleming Cos., which has filed for bankruptcy. Of the four major Fleming distribution centers serviced by USF, all but one closed by the end of the second quarter.
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