While trucking stocks have been among the most volatile in recent quarters as truck tonnage has hit a slow patch, according to the Bedford Report, an analyst research firm, leading economic indicators are suggesting growth going forward.
Bedford Report pointed out in a news release today that although freight volumes have flattened, the most recent Cass Freight Index suggested growth on an annual basis.
On an annual basis, June shipments were up 5.3% - below the 9.6% and 12.3% year-over-year gains from May and April, respectively. Bedford Report noted that many analysts consider the Cass Freight Index as the most accurate barometer of freight volumes and market conditions, with many noting the Cass Index sometimes leads the American Trucking Assns. (ATA) freight tonnage index “at turning points.”
As for YRC Worldwide, Bedford Report said that despite reporting yet another quarterly loss last week, the struggling company said it is prepared to complete a key restructuring plan and mark a change in its top leadership.
Bedford Report said YRCW reported that it lost $38.7 million, or 81 cents a share, during the second quarter, although revenue grew 12% to $1.26 billion. However, regional business saw a 14% surge in revenue - offsetting the 10% drop in its truckload unit. YRCW’s second quarter included $17 million in restructuring fees.