Phoenix-based Knight Transportation bucked a trend in Wednesday's batch of first quarter fleet financial results.

Most of the day's fleet results show net income down compared to the same period last year, despite in some cases having more revenue. Knight, however, announced its 43rd consecutive quarter of year-over-year growth in both revenue and net income.
For the quarter ended March 31, net income increased to 4.2 million, up from 3.9 million the year before. Net income per diluted share increase 7.7%, to 28 cents from 26 cents for the same quarter in 2000. Income from operations increased 13.6%, to $7.8 million from $6.9 million a year ago. Revenue, including fuel surcharges, was $56.7 million, compared to $45.1 million last year.

Heartland Express, Coralville, Iowa, also did fairly well in the first quarter, considering the overall economic climate. The company announced first quarter 2001 net income of $8.9 million for a 12.4% net margin, down just slightly from last year's 9.1 million first-quarter results. 2001 first-quarter revenues were $71.9 million, a 7% increase compared to $67.2 million for the same period for 2000. (The first quarter of 2000 was positively impacted by a non-reoccurring gain on sale of two properties nearing $1.5 million.)
Challenges faced during the first quarter of 2001 included a slowing economy, high fuel costs, declining equipment values, and a continued tight market for owner-operators. The company said it believes that the first quarter results are favorable in a depressed economic climate.
Despite the economic challenges, the company continued working during the first quarter to update its fleet, upgrading approximately 200 Freightliner Columbia power units and more than 600 Wabash Duraplate trailers.

Roadway Express reported net income was $5 million for its first quarter, down 52% from $10.4 million in the first quarter of 2000. Net revenue of $650.5 million for the first quarter was down 4% when compared to the same time last year. Roadway's operating income for the first quarter of 2001 was $14.1 million, down 18.7%.
Total tonnage dropped 10.4% compared to the first quarter of 2000. Less-than-truckload tons were down 9.7% and truckload tonnage 13.3%. Roadway attributed the declines in tonnage and revenue to the slowing national economy and severe weather late in the first quarter. Officials predict the second quarter "will include modest, contractual wage and benefit increases, and our operating performance will continue to be impacted by the economic environment."

Parent to trucking and air freight operations, CNF Inc., Palo Alto, Calif., reported first-quarter 2001 net income of $13.5 million. This compares to $33.4 million in the first quarter of 2000.
Operating income was $33.7 million, compared with $71.5 million in the same quarter a year ago. Revenue for the first quarter, however, was only slightly off of last year's numbers, with $1.28 billion compared with $1.32 billion in first-quarter 2000.
"All of CNF's businesses were affected by the continuing downturn in the U.S. economy," said Gregory Quesnel, president and CEO.
Con-Way Transportation Services reported first-quarter operating income of $36.7 million, compared with $56.7 million in the first quarter of 2000. Its revenue of $469 million compares to revenue of $508.4 million in first-quarter 2000, which was a record first quarter and included $24 million of revenue from Con-Way's truckload operation, which was sold in August of 2000. Despite a 4-percent decline in tonnage, Con-Way improved its productivity during the quarter.
Emery Worldwide reported a $6.5 million first-quarter operating loss, compared with operating income of $6.8 million in the same quarter a year ago. Revenue totaled $583.2 million, down 2% from the prior-year period.
Menlo Logistics reported first-quarter operating income of $8.2 million, up 7% from the first quarter of 2000. Revenue at Menlo was $222.6 million, an increase of 6% from the first quarter of 2000, thanks to its less asset-intensive business model.

M.S. Carriers, Memphis, Tenn., reported net income for the quarter was $1.1 million, a 77% decrease from $4.6 million in the first quarter of 2000. Operating revenues for the first quarter of 2001 increased 9% to $182.2 million from $167.1 million in the same period 2000. But perating income for the first quarter of 2001 was $6.7 million, a 32% decrease from $9.9 million in the same period 2000.
Mike Starnes, chairman and CEO, said softness in the truckload freight markets resulted in more non-revenue miles, especially in January and February. March was better, but still down from last year.
M.S. Carriers expects to close its merger with Swift Transportation in the second quarter.

USA Truck, Van Buren, Ark., is still losing money, but is seeing signs of improvement. The company reported a net loss of $404,910 for the first quarter of 2001, which was slightly more than the loss of $394,385 for the first quarter of 2000. Operating revenues for the first quarter 2001 of $60.9 million were up 10.5% from $55.1 million for the same quarter of 2000.
"Over the past few quarters, we have been addressing the issue of revenue growth with declining net income caused by sagging equipment utilization," said Robert M. Powell, Chairman, President and CEO. "We are pleased to announce that the trend is beginning to turn and we are seeing positive results from our efforts."
Powell said during the first quarter, the company saw improvements in the quality and number of drivers hired, thanks in part to a driver pay increase implemented last October. This resulted in fewer unassigned tractors and more average miles per tractor per week during the quarter. The company had lower recruiting costs, a lower accident rate and a lower turnover rate compared to the same quarter a year ago. However, this was not enough to overcome the higher cost of the driver pay increase.
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