Celadon Expects Higher Fourth-Quarter Results

Trucking company Celadon Group(CLDN Quote) bumped up its fourth-quarter guidance on cost cutting and increased revenue.

The company now expects to earn 12 cents to 14 cents a share in the quarter, compared with a loss of 5 cents a share a year ago. Analysts polled by Thomson Financial/First Call were looking for 11 cents a share.

The company said its earnings growth is driven by cost reduction measures and higher revenue associated with the integration of former Burlington Motor Carriers customers. Celadon bought Burlington's assets in March.

Celadon also warned that expenses associated with on-boarding and integrating 300 tractors and 800 trailers would negatively affect this quarter's results, but added that it expects the Mexican border to be opened sometime this summer, allowing Mexican trucks into the U.S., positively impacting earnings.

Shares of Celadon closed Tuesday at $11.31 before the news.