Question-and-Answer Session
Operator
(Operator Instructions). Your First question comes from Tom Wadewitz with JPMorgan.
Tom Wadewitz - JPMorgan
Yes good morning.
Doug Stotlar
Hi Tom.
Tom Wadewitz - JPMorgan
I wanted to ask you little bit about pricing and outlook for demand as well, I think on the third quarter guidance that you talked about, you mentioned revenue per hundred weight [ex-fuel] looked like it might be down. Is that something that is more a mix of fact, and when price is flat, how are you looking at that? What does the pricing environment look like at the present time?
Dough Stotlar
Tom there is a couple of things going on as far as, obviously we look out through the rest of the year from the pricing environment, why we expect year-over-year yield to be down. Part of it has to do with the fact that each of the months of the second half of last year all the way through November, so from July all the way through November, we actually improved the yield each month, month-over-month, which was defying the gravity last year at this time and we pulled about every rabbit out of the hat we could to improve yield last year. So we really do not have that many opportunities to have that incremental improvement. So, we have real difficult comparisons year-over-year to begin with, but the biggest, it really has to do with the fact that weaker shipment is up significantly and right now our weight per shipment is up almost 5% over the prior year which is going to have a real dampening effect. So, I think when you put it all in the mix and adjust it out on an adjusted basis considering the mix and the weight per shipment, its probably going to be flat year over year but because of the optic of the yield comparison it is going to be down.
Tom Wadewitz - JPMorgan
So if you took out weight per shipment and length of haul changes you would say pure price basis are adjusted, if you expect it to be flattish?
Dough Stotlar
That is correct.
Tom Wadewitz - JPMorgan
Okay. When you gave the guidance in April you changed your guidance for the full year, it seems like you are quite considerable concern about the pricing environment deteriorating, seems like that is stabilized, what is your sense of it now. You are pretty confident it could be stable looking forward? What does competitive behavior look like?
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