Earnings
Forward Air Cuts 1Q Outlook Below Street View
The Associated Press
04/09/09 - 11:22 AM EDT
GREENEVILLE, Tenn. (AP) Forward Air Corp., which offers surface transportation services, on Thursday slashed its first-quarter profit outlook as the economic slowdown continues to drag airport-to-airport revenues.
Forward Air cut its earnings per share guidance to 3 cents to 5 cents, down from its previous outlook of 10 cents to 15 cents per share.
The company said recent operating results and other market factors will result in an impairment charge in the first quarter.
Analysts polled by Thomson Reuters, on average, anticipate higher earnings of 12 cents per share.
"While the first quarter in this operating segment is historically weak, this weakness was further exacerbated by the severe downturn in consumer spending," said Chief Executive and President Bruce Campbell, in a statement.
Tonnages in the first quarter were down 22 percent, while yield driven on a quarter over quarter decline in fuel surcharge revenue fell 4 percent.
Cost cutting efforts by Forward Air have been reasonably effective, but not enough to offset the deterioration seen in airport-to-airport revenues because of the recession, the company said.
The company is scheduled to report its first-quarter results after the market close on April 20.
Shares of Forward Air added 75 cents, or 4.5 percent, to $17.57 in late morning trading.