U.S. Xpress Sees 1Q Loss on Fuel Prices, Soft Demand

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ruckload carrier U.S. Xpress Enterprises Inc. said Wednesday it is facing a first-quarter loss of 11 cents to 14 cents per share due to high fuel prices and reduced seasonal freight demand.

U.S. Xpress’s announcement follows one by truckload firm Covenant Transport Inc., which said last Wednesday that it would either break even or lose up to 6 cents per share, also do to high fuel prices.

U.S. Xpress said in a statement that it had also seen a greater-than-expected downturn in seasonal freight shipments, and that its fuel prices were about 30% higher than last year.

The carrier said it had difficulty in attracting drivers, which resulted in an approximately 2% decline in average seated tractors when compared to the fourth quarter of 2004.

It said its average revenue per loaded mile, excluding fuel surcharges, would increase 9.5% to about $1.48, compared with $1.35 last year. But that was less than its expectations due to soft freight demand, the company said.

The company will also incur an operating loss of $2.7 million to $3 million in its Xpress Global segment due primarily to air operations, it said.

U.S. Xpress said that historically, the first quarter has always been its most difficult to do reduced freight shipments and higher operating expenses.

The company is ranked No. 21 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.