Swift and Covenant see profits plummet in first quarter, blame too many trucks

Mike

Well-Known Member
Staff member
Profits for two trucking operations in the first quarter of the year fell dramatically, both saying they battled a tough pricing environment and excess capacity.

Swift Transportation Co. on Monday reported net income fell 83.7% from the same time a year ago to $5.2 million, or from 23 cents per share to 4 cents per share, less than the 12 cents per share expected by a consensus estimate of analysts.

Total revenue fell to $871.1 million from $906.9 million, despite fuel surcharge revenue increasing more than $30 million to $92.7 million, with much of that outweighed by higher fuel prices.

Earnings Watch: Swift, Covenant Profits Plummet More Than 80% - TopNews - Fleet Management - TopNews - TruckingInfo.com
 

Mike

Well-Known Member
Staff member
Swift and Covenant, in my opinion, are trying to mislead others looking to enter or expand in the industry due to their own failings.

Load movement is up, and load to truck ratio is better now than it has been for a while now.

Seems like fake news to try and manipulate other company's decisions.
 

Rigjockey

In Gord we trust!
Supporter
I wonder if the merger with another company had anything to do with the financial statements?
 

Tazz

Infidel
I think that there are far to many Titans, Big G, Venture Express, Western Express, etc etc nipping at their heels.

Cameras put a major hurt on them as well. They have had problems staffing the DC'S until they covered them up. Still running shorter handed but it's getting better. I think they are hung between running general freight and dedicated.


As for false news I would not bet on it. They were hurting. The merger shows that.
 

Mike

Well-Known Member
Staff member
As for false news I would not bet on it. They were hurting. The merger shows that.
False news as in the reasoning. Putting out the narrative about capacity that just doesn't match up with what the rest of the industry is seeing.

I have no doubt they are hurting, but most are thriving at this point.

These folks are no different than the pumpkin patch. They try to flood the market with equipment, and are unable to properly utilize it.

The industry is in a major change process right now, and I think many mega carriers gambled and lost on how they projected things to go.

Small to large carriers have picked up freight base at the cost of the Megas. Megas have cut each other's throats recently to try and maintain a freight base.

Right now, I don't think any carrier is sure how to plan for the next 10 years.

Seems a couple of the Megas are planning on the option of simply becoming even larger. Swift/knight with their big potential merger, Schneider going public with the plan on making big acquisitions. I think it will hurt both of them.

I think you reach a point in this industry that if you grow too large, especially if operating in debt, you struggle more to absorb the downturns.
 

Rigjockey

In Gord we trust!
Supporter
False news as in the reasoning. Putting out the narrative about capacity that just doesn't match up with what the rest of the industry is seeing.

I have no doubt they are hurting, but most are thriving at this point.

These folks are no different than the pumpkin patch. They try to flood the market with equipment, and are unable to properly utilize it.

The industry is in a major change process right now, and I think many mega carriers gambled and lost on how they projected things to go.

Small to large carriers have picked up freight base at the cost of the Megas. Megas have cut each other's throats recently to try and maintain a freight base.

Right now, I don't think any carrier is sure how to plan for the next 10 years.

Seems a couple of the Megas are planning on the option of simply becoming even larger. Swift/knight with their big potential merger, Schneider going public with the plan on making big acquisitions. I think it will hurt both of them.

I think you reach a point in this industry that if you grow too large, especially if operating in debt, you struggle more to absorb the downturns.
i have seen it, i know you have seen it where a company gets so large they go full on Supernova and implode.
That is what worries me about where I work that was recently taken over by one of the biggest.
Of course I am not worried about me, I will get out just fine:D
 
Top