After an unusually successful first quarter, Heartland/Gordon took a massive second quarter hit compared to this time last year. They are trying to blame it on a 13 percent rise in wages... but a 13% increase in driver wages of 40 something CPM is nowhere near 11.9% of net. That would require driver wages to be 91% of net profit, which is absurd. They make nearly $600 a day per truck (not only does the math show this, but they openly talk about it). That means drivers arent even 25%. That means 13% of driver pay equals just over 3% of total profit, and well under 2% of Gross.
Every driver they lose is worth over $300,000 in gross income. They have 2000 heartland trucks, and 1000 Gordon trucks. Their annual income is a billion dollars. Thats over $330,000 gross income for each truck.
Thats over $16 million in lost gross income from the 50 drivers they couldnt replace. Just from 50 lost Gordon drivers. That doesnt include lost Heartland drivers.
Your drivers want to work. You make money when they work. Let them work already! Holding back work only irritates drivers and kills profit.
http://www.joc.com/trucking-logisti...-speed-bump-higher-driver-wages_20150729.html
Heartland/Gordon takes massive 11.9% hit in profit since this time last year
Discussion in 'Gordon' started by Davezilla, Aug 13, 2015.
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Does this mean the major shareholder better hold off on buying that 5th Ferrari?
Last edited: Aug 13, 2015
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I would bet that this is due to the massive lose of Gordon contracts with companies not renewing those contracts because they want nothing to do with HeartLand.
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You nailed it on the head. I've seen at least a half dozen major Gordon accounts lost on the west coast in the last 7 months. Those companies hate Heartland and won't do business with them.
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They lost the gp dedicated, anheuser busch dedicated, and target dedicated and all in the nw....
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They are debt free arent they? A few mil lost is not going to be a issue.
You cannot ever get lost money back no matter how hard you work. Drivers are a dime a dozen. Immigrants a potential source of income from Uncle Sam far greater than what it cost to hire them me thinks.
Is the company public or private? There is a yuge difference between the two. -
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SteveScott Thanks this.
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drvrtech77 Thanks this.
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