Tight capacity, rate hikes and acquisitions helped Celadon Group boost net profit 86.2 percent in the last quarter despite a less than 1 percent rise in freight revenue.
The parent of Celadon Trucking reported a $5.4 million net profit on $112.4 million in freight revenue. Celadon’s average rate per loaded mile rose 4 percent.
The Indianapolis-based truckload carrier’s total revenue including fuel surcharges rose 6.3 percent to $141.5 million in the second quarter of its fiscal year.
In the last half of 2011, Celadon reported a 47.9 percent leap in net profit to $10.8 million and a 3.5 percent increase in total revenue to $283 million. In the last quarter Celadon bought American Eagle, the non-refrigerated division of Frozen Foods Express, and Glen Moore, the truckload wing of YRC Worldwide.
That increased the carrier’s average seated truck count 4.1 percent from the previous quarter to 2,633 — adding more than 100 drivers, the company said. The integration of Glen Moore, acquired in late December, into Celadon will add even more drivers to its pool, said Chairman and CEO Steve Russell.