Central Freight Expecting 2Q Loss

Central Freight Lines, Inc., an LTL carrier, yesterday reversed its second quarter profitable guidance into an expected loss of between $0.20- to $0.25 per basic share excluding a one-time tax benefit of $0.11, from its previous guidance of four- to eight cents per diluted share. “The integration of our recent geographic expansion and subsequent return to operating initiatives has not developed as

Central Freight Lines, Inc., an LTL carrier, yesterday reversed its second quarter profitable guidance into an expected loss of between $0.20- to $0.25 per basic share excluding a one-time tax benefit of $0.11, from its previous guidance of four- to eight cents per diluted share.

“The integration of our recent geographic expansion and subsequent return to operating initiatives has not developed as fast as we expected,” said Central’s president & CEO Bob Fasso. “Based on information available through the end of May, we expect labor and purchased transportation to contribute approximately two-thirds of the expected shortfall and self-insured claims to contribute most of the balance.”

According to Reuters, investors reacted quickly, trading heavily to bring shares down $3.54 at $9 per share.

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