Celadon to Refocus on Core Operations
Celadon is a well-known name in the trucking industry. A spokesman for the freight giant said on a conference call that it would be refocusing on its core trucking operations. Discussion was also held about the recent managerial changes the carrier was went through.
Celadon has an experienced staff, with Jon Russell (son of late Celadon founder Steve Russell) serving as president and chief operating officer. Doug Schmidt was appointed as president of the Celadon Trucking subsidiary. The former CEO, Eric Meek, is currently in pursuit of other interests.
Board CEO and Chairman Paul Will spoke about the recent management changes, calling them substantive and symbolic of the refocused efforts. He noted that the efforts were taken because the business was underperforming according to their standards.
When Celadon stocks fell to $1.30 on Thursday from roughly $12 a year ago, it was easy to see that a change needed to be made. The company has announced it expects to show an operating loss of $10 million for the quarter at the end of March. The stock prices finally rebounded to $1.48 by the end of that afternoon.
The company has promised to release statements about the quarter earnings at the time of release. Celadon has acquired four carriers in less than three years, all of them specializing in hauling dedicated freight. A&S Kinard, Taylor Express, Buckler Transport, and FTL Inc. have contributed operating profits since that time.
A heavy dependence on independent contractors and leases coupled with a high turnover rate has led to the carrier’s deteriorating operating ratio. The company noted it is returning to the basics with a mission to establish an asset base for liquidity, reduce debt, and improve operations overall.