A Bumpy Ride
After a year of earnings letdowns--including an estimated $45 million net loss for the June quarter-- Greyhound lines has a new plan for steering back to profitability. On July 14 CEO Frank Schmieder announced that the bus line, pummeled by low airfares, will focus on routes of only 100 to 400 miles. Riders will still be able to take a bus cross-country--they'll just have to make more stops along the way. The strategy could cause revenues, which totaled $666 million last year, to fall by $50 million. Major investors, who have watched the stock price fall from a 52-week high of 22, are hopeful: Greyhound's stock rose 1/2, to 6 5/8, on the news.
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