Hub Group Sees 1st-qtr Profit Below Expectations

DOWNERS GROVE, Ill. (AP) — Hub Group Inc. on Monday issued a first-quarter earnings prediction well under Wall Street's expectations, citing deteriorating demand and poor prices.

The transportation logistics company expects to earn 15 to 20 cents per share for the period. The company's guidance includes about $800,000 in severance costs as part of a previous restructuring.

Analysts currently predict a profit of 28 cents per share.

"Hub Group's freight levels and earnings continue to be impacted by the severe economic recession," said Chief Executive Dave Yeager. "We remain focused on protecting our market share and servicing our customers."

Yeager said the company's cost-cutting initiatives are "well underway" and it has laid off about 70 people since January.

Hub Group is expected to release its first-quarter results on Wednesday, April 22.

Shares fell 41 cents, or 2.3 percent, to $17.76 in aftermarket trading. It closed up $1.54, or 9.3 percent, to $18.17 in the regular session amid a broader market rebound.