Facing a $266M loss in 2019, Roadrunner continues downsizing, sells flatbed division

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Roadrunner Transportation System (No. 31 in the CCJ Top 250) announced Monday it has sold its flatbed business unit for $30 million cash, with proceeds from the sale going to pay down company debt.

The company did not say who purchased D&E Transport, Roadrunner’s flatbed subsidiary. The move comes just over two months after the 3,500-truck fleet announced it was downsizing its dry van division and cutting 10 percent of its workforce, 450 jobs.

Roadrunner in November also announced it had sold its intermodal division for $50 million cash.

The company’s stock price closed at $9 a share on Monday, declining some from its opening price of $9.25.

In its third quarter earnings report released in November, Roadrunner said its revenue took a nearly $50 million hit in September and October due to the six-week strike at General Motors. The company also reported that a malware attack cost it another $10 million.

Roadrunner reported a $97 million net loss in the quarter and a $266 million net loss through the first nine months of 2019.

The Downers Grove, Illinois-based company operated more than 3,500 power units in 2018, according to data in the CCJ Top 250.

Roadrunner in October announced it would downsize its dry van business due to a lack of profitability in the segment. In addition to dumping more than half of its dry van-focused tractors and trailers, the company said it would close five terminal locations and eliminate 450 positions — about 10 percent of the company’s workforce.

The company says it expects to complete the process by the end of the year.