Strong demand and higher prices lifted first quarter revenue 20 percent for less-than-truckload and truckload operator Roadrunner Transportation Systems.
Total revenue rose to $171.2 million, while revenue net of purchased transportation increased 27 percent to $40.8 million despite a 17.8 percent jump in transport costs.
The company’s profit rocketed 350 percent to $4.4 million, despite costs associated with the purchase of intermodal drayage operator Morgan Southern.
Those costs, along with excess health and insurance claims, restrained operating income to a 5.6 percent increase to $7.8 million, the company said Thursday.
Roadrunner was the fastest growing LTL carrier in 2010, increasing revenue for the year 29.7 percent, according to data provided by SJ Consulting Group.
The non-asset-based carrier’s truckload revenue jumped 43 percent, or more than $16 million. Nearly $10 million of that growth came from Morgan Southern.
LTL revenue increased 10.2 percent year-over-year, including fuel surcharges, to $100.7 million. HNet LTL revenue rose 5.4 percent to $25.5 million.
LTL tonnage rose only 0.7 percent from a year ago, but that freight got lighter, which boosted Roadrunner’s LTL shipment count 3.2 percent in the quarter.
The Cudahy, Wis., company increased its LTL pricing, reflected in a 5.6 percent increase in revenue per hundredweight, or yield, excluding fuel surcharges.
Roadrunner’s brokerage arm increased revenue 20.4 percent to $16.5 million, thanks to increased shipping by customers looking to secure truck capacity.
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