William B. Cassidy | Jan 26, 2011 12:43PM EST
Truckload carrier Celadon Group’s net profit increased to $2.9 million in its last quarter, nearly triple its net income a year ago of $1 million.
The company’s revenue climbed 4.6 percent to $133.1 million in the quarter that ended Dec. 31.
Excluding fuel surcharges, Celadon’s revenue rose 2.3 percent from a year ago to $111.6 million. Fuel surcharge revenue rose slightly to $21.5 million, compared with 20.1 million in the previous quarter, as diesel fuel prices trended higher.
The company was able to eliminate “less desirable freight” and better focus on profit in the second quarter of its fiscal year, said Chairman and CEO Steve Russell. Its average rate per loaded mile increased 6.6 percent to $1.477, he said.
That’s marginally higher than the $1.471 average rate per loaded mile it achieved in the previous quarter, a 4.5 percent increase from the same period in 2009. The sequential increase, while slight, bucked a seasonal trend, Russell said.
“Our December quarter loaded miles per truck per week have historically declined approximately 4 percent sequentially from the September quarter,” he said. Harsher winter weather did reduce its total miles by about 5 percent year-over-year.
Average revenue per total mile was up 5.4 percent over the same period in 2009, at $1.319 per mile. On average, Celadon had 2,687 “seated” tractors in the quarter.
The company’s sales and profit did slip from the previous quarter, when it reported a $4.4 million net profit on $140.3 million in revenue. Over the past two quarters, freight revenue increased 5.1 percent, and net income rose to $7.3 million.
“We believe with a newer fleet, experienced driver base, solid balance sheet and a diversified business mix, we are well positioned to capitalize on the increased regulatory environment” facing the transportation industry, said Russell.
-- Contact William B. Cassidy at wcassidy@joc.com
