Universal Logistics Holdings Inc., the first trucking company to warn that third-quarter earnings would trail Wall Street forecasts, announced that earnings per share would be as much as 50% below the 2015 period.
Universal, based in Warren, Michigan, said earnings will range from 16 cents to 20 cents per share, compared with 32 cents per share in last year’s third quarter. The average estimate compiled by Bloomberg News was 29 cents per share for the third quarter.
Universal, which ranks No. 30 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, said that earnings before interest and taxes will drop to as low as $9.2 million from $16.9 million on a year-over-year basis. Revenue is projected to decline at least 5%.
"Although we do see some bright spots, the global macro headwinds facing our businesses continue to be a significant drag on our earnings," CEO Jeff Rogers said. "This is particularly true in our value-added operations supporting the heavy-truck market. “Despite these challenges, we continue to grow our other value-added business at a fast pace, and we are very excited about future opportunities in our pipeline.”
Part of the reason cited for the shortfall was a loss in the business that provides value-added services to the heavy-truck market, according to the statement. In the 2015 period, that business was profitable.
