William B. Cassidy | Jul 30, 2010 11:16AM EDT
Acquisitions and higher freight demand helped Universal Truckload Services increase sales 28.7 percent in the second quarter to $154.3 million, the carrier said Friday.
The Warren, Mich.-based motor carrier’s net profit leaped 253 percent from a year ago to $4.6 million, boosted by a $2.1 million sale of stock in the three months ending June 30.
Total operating revenue rose 11 percent from the first quarter, as truckload, brokerage and intermodal sales increased.
“Load counts, rates and margins are showing signs of recovery in the truckload, brokerage and intermodal segments of the business,” said Don Cochran, president and CEO. He said he was “cautiously optimistic” about the second half of 2010.
Universal is an asset-light truckload carrier, with owner-operator-supported flatbed and dry van operations in the United States and in Ontario and Quebec.
The company had $503.2 million in operating revenue in 2009, a 33.8 percent drop from its pre-recession revenue peak of $759.5 million in 2008.
In the second quarter, its truckload revenue increased 29.3 percent from a year ago to $97.1 million and 12.7 percent from $86.2 million in the first quarter.
Brokerage revenue increased 33.1 percent from a year ago to $34.8 million, a slight increase from $32.4 million in third-party sales in the first quarter.
Universal’s revenue from its intermodal drayage business rose 20.2 percent from a year ago to $22.5 million, up from $20.4 million in the first quarter.
The company cut its trucking capacity about 7 percent compared to a year ago and saw its yield for truckload services grow 13.6 percent while yield on brokered loads edged up 4.8 percent.
A flurry of acquisitions late last year gave the truckload operation a $12.7 million revenue boost and added $7.9 million in brokerage revenue, the company said.
Since the third quarter of 2009, Universal has acquired D. Kratt International, Cavalry Transportation and Cavalry Logistics and TSD Transportation.
Its subsidiaries also include Universal Am-Can, Mason & Dixon Lines, Economy Transport, Louisiana Transportation, Mason Dixon Intermodal, Great American Lines, CrossRoad Carriers and NYP of Michigan.
Contact William B. Cassidy at wcassidy@joc.com
