Trucking News with Ruthann. In this weeks new, a few certified doctors were caught falsifying physicals and DOT drug screens. Also, Celadon is under the microscope. Plus Recalls. Peterbilt, Kenworth, Freight Liner and International all have recalls you should know about.
The company’s stock, which in recent days had been trading near a 14-year low, was down 53% in trading early Tuesday, to $1.88 a share.
According to SJ Consulting Group, Celadon is the 12th-largest trucker in the U.S. focused on truckload shipments, where the capacity of a full truck is sold to a single customer, typically on long hauls of more than 500 miles. The company moves freight for customers in the U.S. and provides cross-border shipments between the U.S. and Mexico and the U.S. and Canada.
Over recent years, Celadon substantially expanded its truck-leasing business, which grew to 11,300 tractors under management at the end of the 2016 fiscal year, from 750 in 2013, according to its annual report. The company moved many of those assets off its books last year through a joint venture with Element Transportation LLC, a subsidiary of a large Canadian company that previously provided third-party financing to Celadon’s leasing arm.
The joint venture has drawn the attention of short sellers who accuse the company of misrepresenting its financial position and using the transaction to hide mounting operating losses. One short seller, Prescience Point Research Group, said the Securities and Exchange Commission is investigating the company, which has also been targeted by at least one federal lawsuit filed on behalf of investors.
Plus, a doctor in GA, AL to and CA are in hot water for their part in falsifying DOT drug screen and physicals. In recent years doctors have been required to be certified in order conduct DOT related examinations for Truck Drivers. In this writers opinion you would think a doctor would have more class. The Trucking Industry needs better images repressing it.