A further sign of continued weakness in the U.S. freight market, air cargo trucking company Forward Air Co. is lowering its third-quarter earnings projections to between 35 and 37 cents per share.
“While making positive strides in many areas during the quarter, we could not overcome the negative effects of a sluggish economy in our airport-to-airport network,” said Bruce Campbell, chairman and CEO.
Despite the sluggish market, Forward Air – which operates as a contractor to the air cargo industry, providing time-definite ground transportation services through a network of 81 terminals located on or near major airports in the U.S. and Canada – is keeping its options open in terms of growth.
The company said it has opened a new $100-million line of credit, replacing its exiting $20-million line, that allows for an additional $50 million in borrowings so it can fund potential acquisitions, the repurchase of its common stock, and for financing other general business purposes.
