Swift sees earnings shortfall

TL carrier Swift Transportation Co. Inc. has warned that its third-quarter earnings will fall short of analyst expectations. Phoenix-based Swift said for its third quarter, which ended September 30, earnings will be in the range of 13 to 16 cents per share – less than the 19 cents estimated by analysts. "We attribute the shortfall to continuing difficult economic conditions, which were further hampered

TL carrier Swift Transportation Co. Inc. has warned that its third-quarter earnings will fall short of analyst expectations. Phoenix-based Swift said for its third quarter, which ended September 30, earnings will be in the range of 13 to 16 cents per share – less than the 19 cents estimated by analysts.

"We attribute the shortfall to continuing difficult economic conditions, which were further hampered by the recent tragedies in New York, Washington and Pennsylvania," said Jerry Moyes, Swift’s chairman & CEO. He added that the earnings shortfall could hamper Swift’s plans to invest $10.5 million in Transportes EASO, a Mexican truckload carrier in which Swift owns a 50% interest, through its subsidiary, M.S. Carriers.

Moyes said other factors may affect Swift’s earnings for the balance of the year, including excess capacity in the trucking industry, significant increases or rapid fluctuations in fuel prices, difficulty in attracting and retaining qualified drivers and owner-operators and a recessionary economic situation. He added that downturns in the retail and manufacturing industry have hit Swift hard, as it has a significant concentration of customers in those markets.

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