Tight truckload capacity, higher rates and new customers helped Celadon Group roar back from the depths of the recession in the third quarter of 2010.
In the first quarter of its fiscal year, Celadon boosted net income 69 percent from the last quarter and more than 600 percent from a year ago to $4.4 million.
Its revenue increased 9.8 percent to $140.3 million in the 2010 quarter from $127.8 million in the 2009 quarter. Sales were up only 1 percent from the last quarter.
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"Our average rate per mile improved to $1.47, up about six cents per mile from the September 2009 level, or 4.5 percent," said Chairman and CEO Steve Russell.
Celadon's rates are about 8 cents below their peak in December 2006, he said.
Utilization per truck improved as well. The company cut 159 tractors and 455 trailers from its fleet while maintaining its total miles traveled, Russell said.
"We have also increased our non-asset based business revenues over 20 percent in the current quarter, compared with the prior year," he said.
The Indianapolis-based trucking company's operating ratio improved from 97.5 a year ago and 95.2 in the last quarter to 93.2.
Celadon is one of several truckload carriers reporting stronger earnings and revenue despite a general slowdown in the economy.
-- Contact William B. Cassidy at email@example.com.