Shares of freight truck operator U.S. Xpress (USX - Get Report) were plunging Friday after the company announced that it was lowering its second-quarter and full-year outlooks due to segment headwinds.
The company said it now expects its second-quarter operating ratio to be 97.5%, as compared with previous expectations of a sequential improvement from its 95.7% first-quarter operating ratio.
The company also expects a full-year adjusted operating ratio to range between 95.5% and 97.5%, down from its previous guidance of 93%.
"The freight market has not exhibited typical seasonal improvement, which we attribute to a combination of trade, industrial production, weather and other factors. In addition, truckload industry capacity has increased year-over-year, as an attractive spot market through the end of 2018 and higher driver pay resulted in incremental trucks and drivers entering the market," CEO Eric Fuller said.
As a result, the company is adjusting its net capital expenditure budget to between $110 and $130 million from its previous expected spend between $170 million and $190 million.
U.X. Xpress is the country's fifth-largest asset-based truckload carrier by revenue. Shares were down 19.6% to $3.90 Friday.