Weak demand leads to weak trucking stock prices
Via the Journal of Commerce:
Shares in Con-way, a less-than-truckload carrier, fell almost 19 percent, while shares in truckload carrier JB Hunt Transport Services declined more than 12 percent, while Covenant Transportation Group saw its price fall 5 percent.
Trucking brokerage firms C.H. Robinson Worldwide and Landstar System fell 6 percent and 9 percent.
Con-way announced late Wednesday that it now expects full-year 2008 earnings to fall within a range of $2.60-2.80 per share, down from its previous outlook of $3-3.40.
The U.S. economy had been “battered by an unprecedented confluence of macroeconomic crises,” said Con-way CEO Doug Stotlar said in a statement.
Can’t say I’m surprised. Expect larger trucking companies to reduce capacity by parking equipment or getting rid of excess equipment altogether. Owner operators could get squeezed and some smaller outfits may exit the industry altogether. It’s a tough world out there for everyone these days.
More on Con-way’s earnings guidance here.
Comments
Subscribe to our free monthly newsletter to have the latest 3PLwire articles delivered directly to your inbox. Just enter your email below:Tell us what you're thinking...