Monday, January 25, 2010

US Truck And Logistics Group Celadon To Issue Performance Figures Today

Investors Eyes on Group with Wide Ranging Transport Portfolio
Shipping News Feature

US – Celadon, best known as a dedicated truck company throughout America, will produce its latest figures today after the market closes. Through its subsidiary companies Celadon hauls freight into Mexico and Canada and numbers many Fortune 500 listed companies amongst its clients. By providing third party logistics as well as e commerce products the group offers a reasonable snapshot of road based trends.

A conference call to discuss the quarter will be held on Tuesday, January 26 at 10:00 a.m. Eastern Standard Time. Participants may join the conference by dialling 800-261-3417 (international calls 617-614-3673) code 43527968. A replay will be available until February 2 by dialling 888-286-8010 (international calls 617-801-6888) and entering call back code 36953789.

Two less than truck load outfits are also due to report this week. 28th January is the date set for reports from both Old Dominion Freight Lines who release their 2009 fourth quarter report upon the market opening with a conference call at 10am EST, and Arkansas Best Corporation figures for the same period will also be released at market opening with their own conference call at 11 am.

For investors, figures for these types of operation have assumed greater importance now that YRC have received a reprieve from their creditors. Sceptics point out that YRC still apparently has to service $45 million of debt by March but its banks, former bondholders (now shareholders) and the Teamsters union have all pulled together to ensure the groups survival in the hope that the cost cutting achieved, and a possible upturn in trade, will ensure the company’s continuance. YRC host their own conference call on 5th February when the groups own Q4 figures are released.

With oversupply in the US truck market continuing to be a problem for all concerned, some analysts' hope truck companies, anxious not to increase debt, will continue to be conservative with new equipment purchases, thus cutting capacity and helping to ensure none of the major players' fail.

The cash for clunkers scheme helped truck makers last year but, as can be seen by the investment programmes overseas we have often reported, many manufacturers seem to think it is unlikely US truck sales will boom this year. Just this week GM have denied reports they intend to create a further 750 jobs by introducing a third shift at their Flint, Michigan plant. Even if employee levels do rise in this sector it is unlikely to compensate for the cutbacks made in the last twelve months as manufacturers trimmed their workforces despite Government incentives.