Mike
Well-Known Member
Just seen this news posting on Facebook, and was a bit surprised. I don't really follow stocks of trucking companies, because I would likely never invest into a trucking company, but was a bit surprised to hear that this SWIFT has dropped off this far.
My totally non-expert opinion, making these sudden changes regarding not buying more trucks is not a good idea. You do things like this quietly, as to not bring fear to your investors.
All this taking place when there is a larger than ever push to increase driver pay and benefits due to retention problems throughout the industry.
It will be interesting to see the direction that SWIFT takes over the next 3-5 years.
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On Tuesday, Swift Transportation announced that they’ll immediately freeze the growth of their fleet, and may even reduce its size, due to the company’s falling stock price.
Over the last year, the company’s stock price has been cut in half, and touched a one-year low of $14.26 just last week.
Swift’s CEO Jerry Moyes spoke about the company’s poor performance on Tuesday and made the announcement to halt fleet growth in order to increase profitability.
“We are extremely disappointed with the current stock price,” he said. “Effective immediately we will enter into a zero fleet growth mode. Until we reach a best in class utilization level, we will not be adding any new equipment.”
The company blamed falling profits on sagging freight demand, coupled with the over-expansion of their fleet size. The company also said they’re considering selling off some of their fleet.
http://www.livetrucking.com/swift-says-they-have-too-many-trucks-and-its-hurting-their-profits/
My totally non-expert opinion, making these sudden changes regarding not buying more trucks is not a good idea. You do things like this quietly, as to not bring fear to your investors.
All this taking place when there is a larger than ever push to increase driver pay and benefits due to retention problems throughout the industry.
It will be interesting to see the direction that SWIFT takes over the next 3-5 years.
--------------------------------------------------------------------------
On Tuesday, Swift Transportation announced that they’ll immediately freeze the growth of their fleet, and may even reduce its size, due to the company’s falling stock price.
Over the last year, the company’s stock price has been cut in half, and touched a one-year low of $14.26 just last week.
Swift’s CEO Jerry Moyes spoke about the company’s poor performance on Tuesday and made the announcement to halt fleet growth in order to increase profitability.
“We are extremely disappointed with the current stock price,” he said. “Effective immediately we will enter into a zero fleet growth mode. Until we reach a best in class utilization level, we will not be adding any new equipment.”
The company blamed falling profits on sagging freight demand, coupled with the over-expansion of their fleet size. The company also said they’re considering selling off some of their fleet.
http://www.livetrucking.com/swift-says-they-have-too-many-trucks-and-its-hurting-their-profits/