Phoenix-based Swift Transportation Co. Inc. announced yesterday that it expects its second quarter results to fall short of published analyst expectations. Individual estimates range from a low of $0.09 per share to a high of $0.28 cents per share.
The company believes that the current estimates do not include a previously announced one-time increase in insurance reserves of $9 to $13 million that it expects to take after it closes the M.S. Carriers merger. It also does not reflect M.S. Carriers’ results for the second quarter, or the additional shares to be outstanding upon closing the merger.
The company expects its earnings for the quarter, prior to any effects relating to M.S. Carriers, such as the insurance adjustment, to be between $0.08 to $0.12 cents per share, based upon the 64.6-million shares outstanding as of yesterday.
"The economy continues to be weak, the freight demand is still soft and we believe that the interest rate cuts by the Federal Reserve still have not stimulated the economy to any significant extent," chairman, president & CEO Jerry Moyes said.
The company says it expects the M.S. Carriers merger to be approved by the shareholders of both Swift and M.S. Carriers at their June 15 annual meetings, and the transaction will be completed prior to June 30.