Despite M.S. Carriers recent $1.6 million pretax charge to insurance and claims expense for the fourth quarter of 2000 and $6.9 million restatement of retained earnings to reflect an increase in previous claims reserves, Swift Transportation Co. Inc. says it will still merge with the TL carrier.
"The adjustments do not diminish Swift's commitment to the merger," said Swift chairman, president and CEO Jerry Moyes, who added that the merger would create the largest publicly traded TL carrier in North America.
In December 2000, Swift announced a merger agreement with M.S. Carriers Inc. under which 1.7 shares of Swift common stock would be exchanged for each share of M.S. Carriers stock.
"We intend to work with M.S. Carriers regarding its methods of estimating claims reserves," Moyes said. "In this connection, we expect that further adjustments may be made to the combined companies' reserves in connection with the merger."