Freight market slow but Roadrunner Transportation gaining market share: CEO
(Reuters) - Roadrunner Transportation Systems Inc (RRTS.N) is gaining market share and expects to grow total revenue by more than 25 percent this year despite a recent slowdown in the U.S. freight market, its chief executive said.
Several transportation companies have warned recently about a slowing freight market. FedEx Corp (FDX.N), the world's second-largest package delivery company, cut its profit outlook earlier this week.
"We continue to grow but not at the same pace as the first and second quarters," Roadrunner CEO Mark DiBlasi told Reuters.
"The freight market this summer has been relatively soft," he said in an interview.
Peter Armbruster, chief financial officer, said Roadrunner's total revenue would be $1.1 billion to $1.2 billion for the year, and cross $2 billion in two to four years.
The company, a provider of trucking and logistics services, said in its earnings call last month that it expected total revenue to cross $1 billion this year.
Roadrunner has seen total revenue grow about six-fold over the past six years to nearly $850 million in 2011, helped in part by its aggressive acquisition strategy.
The company, whose larger rivals include Arkansas Best Corp ABFS.O, C.H. Robinson Worldwide (CHRW.O) and Landstar System Inc (LSTR.O), is one of the more acquisitive companies in the industry, though the deals have largely been small or mid sized.
Cudahy, Wisconsin-based Roadrunner has made five acquisitions so far this year and will do more, CEO DiBlasi said. It has made 11 acquisitions since its initial public offering in May 2010.
"Our acquisition pipeline is extremely robust. We have several potential companies in various stages of due diligence," DiBlasi said.
Asked if the company would make a $100 million acquisition this year, he said there were a few companies of that size in the diligence stage right now.
The CEO added that the company would have to raise money through an equity offering if it were to do an acquisition of that size.
(Reporting by A. Ananthalakshmi in Bangalore; Editing by Maju Samuel)