Another Carrier Lowers Expectations, Three LTLs Hiking Rates
Forward Air Corp. has become the latest trucking operation to lower expectations ahead of releasing its next earnings report.
It is forecasting third-quarter 2016 year-over-year revenue growth to range from between a 2% decline to a 2% improvement, down from a previously announced range of 1% increase to a 5% gain.
The company also lowered its adjusted income guidance range to 48 cents to 52 per share from its earlier announced range of 61 cents to 65 cents. The change, according to a statement, is due to lower freight volumes.
“Since our second quarter earnings call, the economic environment has remained sluggish. While we are seeing the effects across our portfolio, less-than-truckload volumes have been noticeably soft,” said Bruce A. Campbell, chairman, president, and CEO. “Through Sunday, Sept. 18, our unadjusted year-over-year LTL tonnage per day for the third quarter was down 4.6%. While our yields and margins have held up, we no longer project that we will achieve our previously provided guidance ranges and are adjusting our outlook for the quarter.”
Forward Air operates four principal segments: expedited LTL, truckload expedited services, intermodal and pool distribution services.
The news follows LTL carrier Old Dominion Freight Line Inc. saying early this month that it saw less freight during August.
LTL tons per day decreased 1.4% compared to August 2015, which it attributed to a 1.5% drop in LTL shipments per day and a 0.1% increase in LTL weight per shipment.
“The decline in Old Dominion’s LTL tons per day for August reflects an operating environment that continued to be challenging,” said David Congdon, vice chairman and CEO. “The pricing environment has remained relatively stable, however, and quarter-to-date LTL revenue per hundredweight, excluding fuel surcharges, increased between 2% and 2.5% as compared to the same period of last year. As a result, our quarter-to-date total revenue per day …Read the rest of this story
