Celadon replaces president, predicts quarterly loss

Celadon replaces president, predicts quarterly loss

Truckload holding company Celadon Group changed leaders after an auditor withdrew support for previous earnings statements and lenders increased scrutiny of the company.

Eric Meek, former president and chief operating officer, has been replaced by Jonathan Russell, the son of Celadon’s late founder and former chairman and CEO, Stephen Russell.

Blaming poor performance in its irregular route truckload business, the company said Tuesday it expects a $10 million first-quarter operating loss and an operating ratio of 104 percent.

Celadon’s regional, dedicated, logistics, and certain specialized businesses (excluding flatbed and refrigerated) were solidly profitable during the quarter, the company said in a statement.

Celadon, the 12th-largest US truckload carrier, according to SJ Consulting Group, had $25 million in net profit on $1.1 billion in revenue in its last fiscal year, which ended in June 2016.

According to the company, auditor BKD raised issues with transactions relating to the sale of used trucks and trailers. Celadon said it hopes to release an earnings report by May 15.