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.
