The U.S. trucking industry went puttering into '07 in need of a tune- up and new spark plugs.
Sluggish demand during the holidays — when business is supposed to pick up — hurt shipments and rates. The slump caused some transportation firms to cut views, including air freighter FedEx (FDX) and logistics services provider Landstar. (LSTR)
A sharp drop in oil prices last week helped lift beleaguered shipping firms, but the Transportation-Truck group is still ranked 196 out of IBD's 197 industry groups.
U.S. trucking shipments fell nearly 9% in November, says the American Trucking Associations. It was the biggest yearly decline in almost six years and followed a 4% drop in October.
Trucking In A Rut
Late-year stock declines were reported by FedEx and Landstar as well as J.B. Hunt Transportation Services, YRC Worldwide, (YRCW) Knight Transportation, (KNX) Heartland Express (HTLD) and just about anyone else who earns a living on 18 wheels.
Three of those firms — Landstar, J.B. Hunt and YRC — are expected to report lower fourth-quarter profits. FedEx is expected to report an earnings drop for its current fiscal quarter, which ends in February. Heartland should report flat fourth-quarter profit, while Knight eyes a 14% increase. More........
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