USF Lowers 2Q Earnings Estimate

USF Corp. said late Thursday that its earnings for the second quarter would be between 24 cents and 34 cents per share, compared with previous guidance of 40 cents and 50 cents announced in late April.

The Chicago-based company said slower than expected business activity, price pressure in its regional trucking companies and a decline in logistics business were all to blame for the tough quarter.

"While business activity was encouraging in March and April, freight movement slowed in May and continued at a reduced rate into the first part of June," the company said in a release.

The company recently changed its name from USFreightways Corp.

Earlier this month, Roadway Corp. lowered its second-quarter profit estimate by as much as half.

USF said there are some signs of volume picking up in the western United States, but the Midwest and southeast remain soft.

The company said it expects revenue in its logistics segment to decline up to 5% compared with last year.

USF is ranked No. 8 on the 2002 Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

(Click here for the full press release.)

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