Freightways Earnings Beat Analyst Predictions
by October 30, 2000 12:00 am 67 views
Third quarter revenues for American Freightways Corp. in Harrison were up to $0.62 earnings per share compared to $0.44 in the same quarter in 1999.
American is a scheduled, for-hire carrier of less-than-truckload shipments of general commodities.
The earnings per share were a nickel ahead of analysts’ estimates for American, whose revenues rose 20 percent to just under $364 million and the net income jumped 42 percent to $14.4 million.
President and CEO Tom Garrison said American was ahead of its truckload competitors during the initial fuel price crisis because the LTL segment of the business has a fuel surcharge that passes the fuel increases on to the customers.
“And that is one thing that I think confuses investors out there,” Garrison said. “They tend to look at transportation all on one big area. They don’t discern the differences between truckload and LTL carriers.
“Truckload carriers, for instance, are having a harder problem passing the fuel surcharges along. They have a lot more trouble with driver shortages, which we don’t have.”
American’s stock was only at $10.75 in March, but was at $17.38 per share Oct. 24.