Universal Truckload Services Inc. said it expects third-quarter earnings will lag year-earlier results and come in below analysts expectations due to weakening customer demand for truckload services in certain industrial sectors.
The Warren, Michigan-based company, which ranks No. 27 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, said Sept. 29 it would report earnings per diluted share in the range of 27 cents to 31 cents, trailing the 43-cents-per-share consensus estimate by analysts, and down from per-share earnings of 44 cents in third quarter 2014.
In addition, Universal said it expects a decline in operating income in the range of $14.6 million to $16.5 million, down from $23 million a year earlier, on total operating revenues of $283 million to $290 million, compared with $302.1 million in the 2014 period.
Universal listed several conditions that led to the weakened outlook.
It said its financial performance reflects continuing soft demand for truckload transportation services from customers in the steel, energy and selected industrial sectors.
At the same time, while its logistics operations generally continue to operate at anticipated volume levels, foreign currency impacts and implementation costs at certain operations have restrained operating margins somewhat, it said.
Plus, price momentum for its intermodal business has slowed, dampening the rate of growth seen in recent quarters, it said.
Universal will hold its quarterly earnings call Oct. 23. CEO Jeff Rogers and Chief Financial Officer David Crittenden will discuss Universal’s third-quarter 2015 financial performance, the demand outlook in key markets, the impact of pricing, fuel surcharges and foreign currency changes on revenues and profits, and other trends impacting its business.
