SCS Lowers Guidance on Slowing Revenue Growth

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CS Transportation Inc. said Monday its net income for the third quarter would be between 41 cents and 47 cents per share, lower than its previous guidance of 51 cents to 57 cents.

SCS said that revenue growth had been less than anticipated due to slower tonnage growth and declines in weight per shipment. In addition, it said operating expenses increased due to service investments based on expected higher volumes.

The company said in a statement it earned 34 cents a year earlier.

SCS said its truckload and less-than-truckload unit, Jevic Transportation, experienced a softening of tonnage growth. Also, it said tonnage growth fell in August from the month before at regional LTL unit Saia Motor Freight Line.

"Notwithstanding interim results and trends, as well as planned wage increases in August at Saia and in September at Jevic, we still expect solid earnings improvement versus the third quarter of 2003," said Bert Trucksess, chairman and president of SCS.

The company said it would release third-quarter earnings during the week of Oct. 18.

SCS is ranked No. 24 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

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