Freight revenue could fall after Wal-Mart announcement

| Friday, March 31, 2006

Wal-Mart has reported an inventory correction that could take hundreds of millions of dollars in freight revenue out of the market, an Arkansas newspaper has reported.

Wal-Mart is reportedly removing $6 billion of inventory within 100 days, financial analyst Thom Albrecht of Stephens Inc. told The Morning News in Wal-Mart’s home city of Bentonville, AR.

Trucking companies that drive Wal-Mart freight, including J.B. Hunt Transport Services, which gets 15 percent of its revenue hauling Wal-Mart, will likely be affected.

J.B. Hunt and another hauler, P.A.M. Transport Services, are preparing to release first-quarter earnings in April.

Comments