USA Truck Loses on Low Volume

USA Truck lost $1.88 million in the first quarter as a result of a heavy decrease in volume due to the slowing economy and customer inventory reductions.

Revenue fell 14.7 percent from $97.1 percent in first quarter 2008 to $82.8 million in the most recent quarter. The loss in the quarter improved slightly from a loss of $1.95 million during the same period a year ago, affected by a lack of demand that drove miles per tractor per week down by 9.7 percent.

To eliminate unprofitable freight, the long-haul truckload carrier cut its tractor fleet by 10.2 percent.

“Although volumes have stabilized since January, albeit at historically low levels, the truckload industry continues to be plagued by too many trucks chasing too little freight, which is spawning fierce, and often irrational, price competition,” said President and CEO Clifton R. Beckham.