Vitran Cuts Guidance
Vitran (VTNC) slashed 2006 earnings guidance, citing rising costs and recent economic softness.
The Toronto-based transportation and logistics company said it now expects to make around $1.50 a share, down from its previous $1.68 target. Vitran said it was hit by higher than anticipated healthcare and workers' compensation costs in the second half of the year, as well as the impact of the recently softening economy on Vitran's U.S. less-than-truckload and truckload segments.
"Although key LTL metrics such as segment revenue, weight, shipment count and revenue per hundredweight are all showing positive year-over-year and quarter-over-quarter comparisons, our legacy U.S. central states territory is not performing to plan and we no longer anticipate being able to achieve the expected net income and earnings targets we established earlier this year," the company said. "Health care costs are estimated at $1.5 million above 2005 levels, and workers' compensation expenses are anticipated to be approximately $1.0 million higher than the prior year - $0.8 million of which will be in the back half of the year.
"We are committed to improving upon these lower-than-anticipated operating results for the second half of the year. Our long-term strategic plan of exploring additional accretive acquisitions that will further extend Vitran's geographic footprint across North America remains in place. We also continue to be pleased with operating results of our recent purchases Chris Truck Line and Sierra West Express - both of which are performing at anticipated levels."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV