Current Market, Stock Buybacks Go Together
Publicly owned transportation and logistics companies are taking advantage of the current stock market downturn to repurchase their stock at bargain prices. Swift Transportation Co., Phoenix, repurchased 500,000 shares at an average $17.44
share and pledged to buy another 500,000 shares before March 31, 1999. U.S. Xpress Enterprises, Chattanooga, Tenn., has acquired 694,000 shares at an average $11.43 a share since it started a buyback program Aug. 28. It also repurchased 184,289 shares at $11.25 a share in a private transaction with a nonaffiliated stockholder, and will consider additional repurchases through Dec. 31. Consolidated Freightways Corp., Menlo Park, Calif., had bought 1.45 million shares, or 6.3% of its total stock, for $12.6 million as of Sept. 30. Its board earlier authorized repurchase of up to $25 million worth, and the program will continue. Directors of Fritz Cos., San Francisco, authorized the purchase of up to $5 million of its common stock Eagle USA Airfreight, Houston, will repurchase up to 500,000 shares in private and open market transactions. Amertranz Worldwide Holding Corp., Baltimore, started a program to buy back up to $1 million worth of its stock.
The buybacks also improve the companies’ per-share earnings figures by decreasing the number of shares outstanding.
Some of the latest announcements include:
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