Shares of stock in Celadon Inc. have dropped to an all-time low this week in the wake of executive leadership changes and accusations of financial reporting problems.
Shares dropped as much as 67 percent Tuesday morning after the Indianapolis-based trucking company stood accused of allegedly issuing misleading financial statements about its truck leasing program.
Celadon has changed up its leadership team, replacing COO Eric Meek with Jon Russell, the son of Celadon’s founder. The company is projecting a $10 million quarterly loss and a loss of confidence based on the company’s recent financial reports.
In a conference call Wednesday, Russell says the company plans to “refocus” on its core trucking operations. He notes that an increase in dependence on contractors and lease purchase operators, along with more deadhead miles, contributed to their problems.
Chairman of the Board Paul Will commented that “We’re turning back to the basics of trucking.”