Revenues Up, Profits Down For Transport Corp.
July 20, 2000
Transport Corp. of America reported second quarter 2000 revenues of $73.4 million, down from $75 million a year earlier.
Net income was $1.3 million versus $4.0 million second quarter 1999. Revenues for the first six months were $145.6 million, up 2.4% from last year. Net income was $2.2 million versus $6 million for the first half of 1999.
“We clearly experienced a softening freight market in the second quarter with relatively weak demand from some of our key customers,” said Robert Meyers, president and CEO of the Minneapolis based truckload carrier and logistics services provider. “This resulted in a reduction in overall productivity of our fleet, as reflected in lower revenue per tractor per week. However, despite this environment and continued high fuel prices, we were able to achieve an operating ratio of 94%.”
The company has reduced its unseated fleet by 9% from year-end 1999 levels but owner-operators continue to leave the industry due to higher interest rates, lower residual values of used equipment, and higher operating expenses, Meyers noted. The the company’s new drivers’ license school has provided it with a new source of drivers, he added.
Transport America reduced its outstanding debt by over $5 million in the second quarter and, “with $15 to $10 million in estimated available cash flow for the remainder of the year, we expect to further reduce our financial leverage.” he said.