Heartland/Gordon takes massive 11.9% hit in profit since this time last year

Discussion in 'Gordon' started by Davezilla, Aug 13, 2015.

  1. Davezilla

    Davezilla Light Load Member

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    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
     
  2. Canned Spam

    Canned Spam Road Train Member

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    Does this mean the major shareholder better hold off on buying that 5th Ferrari?
     
    Last edited: Aug 13, 2015
  3. Stew209

    Stew209 Medium Load Member

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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.
     
  4. SteveScott

    SteveScott Heavy Load Member

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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.
     
  5. drvrtech77

    drvrtech77 Road Train Member

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    They lost the gp dedicated, anheuser busch dedicated, and target dedicated and all in the nw....
     
  6. x1Heavy

    x1Heavy Road Train Member

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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.
     
  7. MrEd

    MrEd Road Train Member

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    Any time a company buys out another company, they don't keep all the contracts. Had a boss at an old company say they expect to lose 40% of the contracts they acquire in a buyout. It usually isn't about "hate". It's about that shipper considering it a convenient time to reevaluate their transportation contracts.
     
  8. drvrtech77

    drvrtech77 Road Train Member

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    Heartland has a no chain up policy so with that being said buying a company out of the Pacific Northwest with that idiotic policy was asinine and that more than likely led to the cancellation of a contract simply because Heartland could deliver the loads on time or at least in a reasonable amount of time
     
    SteveScott Thanks this.
  9. SteveScott

    SteveScott Heavy Load Member

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    I agree with you BUT, Heartland has been going out of their way to lose some of these customers. Clients like GP require high cube trailers and Heartland is phasing them out for only low cubes. Lately they have been laying off most of their day cab drivers and expecting the OTR drivers to pick up the slack for little pay. These short hauls with live load/unloads take up the entire day and we get paid by the mile not the hour. It seems as though they bought Gordon only for the real estate and not for the client base.
     
    drvrtech77 Thanks this.
  10. Stew209

    Stew209 Medium Load Member

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    Actually Heartless has been coming to their senses lately in a way. I have been seeing new high cube Heartless trailers slowly showing up in the yards.
     
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