Heartland Profit Withstands Trucking Downturn

Truckload carrier Heartland Express remained profitable in the first quarter despite a 22.8 percent drop in revenue and sinking demand for freight capacity.

Net income at the North Liberty based short-haul to medium-haul carrier fell 4.1 percent to $14.1 million compared with $14.7 million in the first quarter a year ago. Revenues declined from $149 million to $115 million. The carrier’s operating ratio, a key measure of operating efficiency, improved to 83.4 percent in the quarter from 86.7 percent in the same period a year ago.

Helping drive that efficiency was Heartland’s ability to control fuel expense, which dropped 51.4 percent from first quarter 2008. Much of that was driven by a dramatic fall in fuel prices. However, Heartland also benefits from price discounts from bulk fuel purchases. The company owns 12 bulk fuel storage facilities throughout its operating territory.

The carrier pointed out, however, that Heartland “has not seen any strong indicators of improvements in the demand for freight services that would affect our levels of business in the near future.”