Xtra Forecasts 57% Earnings Drop

Xtra Corp. (XTR) said Wednesday that lower freight demand and increased costs could cause earnings in the third quarter to fall as much as 57%.

Xtra, which leases truck trailers and cargo containers to the transportation industry, also expects fourth-quarter results to lag.

According to Xtra’s press release, earnings in the period ending June 30 will be 50-55 cents per share, compared with $1.15 in the same quarter last year.

Customers in the United States and elsewhere are using fewer trailers and marine cargo containers, a spokesman said, while costs of maintenance, Internet business and truck-tracking have risen.

At the same time, losses from equipment sales increased.

Xtra was expected to earn 80 cents a share in a First Call/Thomson Financial analyst survey.

(Click here for the full press release.)

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