Allied Holdings, Inc. Results to Be Impacted by Auto Industry Slowdown
7 December 2000
Allied Holdings, Inc. Results to Be Impacted by Auto Industry Slowdown
DECATUR, Ga., Dec. 7 Allied Holdings, Inc.
acknowledged today that rapidly deteriorating market conditions in the
automotive industry will dramatically impact the company's fourth quarter and
full year expected earnings. Allied Automotive Group, an Allied Holdings,
Inc. subsidiary, is the largest company in North America specializing in the
delivery of new and used vehicles.
Last week, major automobile producers announced that November sales were
lower due to a softening economy. Several manufacturers announced plans to
substantially reduce vehicle inventory by cutting production schedules or
extending plant shutdowns at facilities throughout the United States,
including factories served by Allied Automotive Group.
Allied Automotive Group is reacting to market conditions by meeting with
customers to make sure equipment utilization and operating levels are
appropriate to balance current and expected customer demand. The company will
continue to closely monitor automobile manufacturer inventory and production
levels on an ongoing basis.
Allied Holdings, Inc. is the parent company of several subsidiaries
engaged in providing logistics, distribution and transportation services to
the automotive industry. The services of Allied's subsidiaries span the
entire finished vehicle distribution continuum, and include logistics, car-
hauling, intramodal transport, inspection, accessorization, and dealer prep.
Allied, through its subsidiaries, is the largest company in North America
specializing in the delivery of new and used vehicles in the global
marketplace.
Statements in this press release that are not strictly historical are
"forward-looking" statements. Investors are cautioned that such statements
are subject to certain risks and uncertainties that could cause actual results
to differ materially. Without limitation, these risks and uncertainties
include economic recessions or downturns in new vehicle production or sales,
the highly competitive nature of the automotive distribution industry,
dependence on the automotive industry, labor disputes involving the Company or
its significant customers, the dependence on key personnel who have been hired
or retained by the Company, the availability of strategic acquisitions or
joint venture partners, changes in regulatory requirements which are
applicable to the Company's business, risks associated with conducting
business in foreign countries, and changes in vehicle sizes and weights which
may impact vehicle deliveries per load. Investors are urged to carefully
review and consider the various disclosures made by the Company in this press
release and in the Company's reports filed with the Securities and Exchange
Commission.
NOTE: Allied Holdings, Inc., will announce fourth quarter results on
February 13th before the market opens. Management's discussion of these
results will be accessible at the company's web site http://www.alliedholdings.com
beginning at 10:30 a.m. EST on February 13th.