Swift Profit Falls Despite More Revenue
October 23, 2013
Profit for Arizona-based Swift Transportation fell in the third quarter of the year despite doing more business.
Photo: Evan Lockridge
Income fell from $33.7 million in the third quarter of 2012 to $30 million during the third quarter of this year. Total revenue increased from $993to just over $1 billion during the same time.
Revenue for the company’s truckload business increased to $580 million in the most recent quarter, from $565 million a year ago, while in its dedicated operation it increased to $185 million from $183 million during the same time.
Swift’s Central Refrigerated segment, saw revenue increase to $137 million from $122 million a year earlier, a 15% hike. Swift purchased Central Refrigerated in August for $225 million.
Intermodal business increased to $90 million from $86 million.
“Our industry is experiencing substantial headwinds including higher equipment and maintenance costs an increasingly constrained driver market, challenging new hours of service regulations, and a lackluster freight environment,” said Swift in a statement. “Our adjusted operating ratio improved in our truckload, dedicated and intermodal segments. Our intermodal segment was profitable through the first nine months of the year as we have grown revenue and increased the utilization of our equipment and we expect this trend to continue into the fourth quarter.”
Swift says it is the process of adding several new dedicated accounts “which should add positive growth in the fourth quarter and into 2014.”
More details on Swift's third quarter performance are on the company website.