• John Larkin Releases First Quarter 2010 Transportation Earnings Preview

John Larkin Releases First Quarter 2010 Transportation Earnings Preview

Wednesday April 07, 2010

John Larkin CFA, Managing Director of Stifel Nicolaus Transportation & Logistics Research Group has released his First Quarter 2010 Transportation & Logistics earnings preview where he outlines the various themes he believes best defined the quarter along with brief updates on each sector of the Transportation & Logistics marketplace and each company under our coverage. The following are his main takeaways from the quarter:

Freight demand continues to modestly strengthen but sustainability remains in doubt; First Quarter 2010 contract pricing remarkably competitive (except in protected sectors); not all, but many lenient lenders/lessors still supporting non-sustainable operations/capacity.

Freight volumes continued to gradually recover in First Quarter 2010, but inventory re-stocking, fiscal policy stimulus, and unusually accommodative monetary policy might have provided non-sustainable boosts.

Capacity still declining but at a slower rate than desired as most lenders and lessors remain unwilling to liquidate or repossess rolling stock in this depressed equipment value market; however, freight volumes appear to be nearing current capacity levels; yet contract pricing power still largely resides in the hands of shippers.

The shape of economic recovery remains uncertain.

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