Losses Deepen at KLLM
April 28, 2000
KLLM Transport Services, Inc., Jackson, MS lost $1.0 million in the first quarter, compared with a net loss of $225,000 a year ago. Operating revenue was $57.6 million compared
with $55.3 million for the first quarter of 1999.
The company attributed the loss to fuel charges that were much higher than expected. Net of surcharges and fuel hedges, the higher fuel costs reduced operating income for the quarter by approximately $1.8 million, net of income taxes, compared with the same period in 1999. Improved utilization of 3%, as measured by miles per tractor per week, combined with an average rate increase of 2% before surcharges, was more than offset by higher fuel costs.