Two flatbed carriers reported first-quarter losses and lower revenues this week, but had some good news to go with the bad.
Smithway Motor Xpress, Fort Dodge, Iowa, saw a net loss in the first quarter on a drop in revenue. The loss of $1.3 million compares to net earnings of $238,000 in the first quarter a year ago. Operating revenue dropped 6.6 percent to $47.4 million from $50.7 million.
Company officials blamed the slowing economy and the worst winter in many years. Soft freight demand caused a combination of fewer loads, rate pressure, higher non-revenue miles, and more layovers. The harsh winter added to the problem, increasing fuel, towing, and repair expense, making deliveries difficult, and further slowing the activity of customers in Smithway's core building materials group.
"All in all, we are experiencing one of the most challenging trucking environments I can remember," said Chairman, President, and CEO William G. Smith.
The good news is, as trucking companies go out of business, the driver shortage appears to be easing, Smith said. "We have experienced record driver orientation classes and our tractor fleet is practically fully seated with drivers for the first time in several years."
Boyd Bros. Transportation, Clayton, Ala., saw lower revenues and a net loss for the quarter - although the loss was much less of one than the fourth quarter preceding it.
Operating revenues dropped 11% to $30.3 million, versus $33.8 million last year. The net loss of $292,902 was a significant improvement from the loss reported in the fourth quarter of 2000. In the first quarter of 2000, Boyd Bros. had net income of $230,781.
The decline in revenues from year to year was primarily attributable to the company's Welborn division, which closed its logistics and specialized operations in late 2000. Freight volume for both the Boyd and Welborn divisions was slow for the quarter as a whole, although loads and revenues in both divisions began to strengthen in March, as expected. Both the Boyd and Welborn divisions were profitable for the month of March.
"Although our first quarter reflected lower revenues and a loss for the period, we continue to see encouraging signs of a rebound in general business conditions and our operating outlook," said Gail Cooper, president and CEO. Freight volume is approaching current capacity, she said.
Smithway Motor Xpress, Fort Dodge, Iowa, saw a net loss in the first quarter on a drop in revenue. The loss of $1.3 million compares to net earnings of $238,000 in the first quarter a year ago. Operating revenue dropped 6.6 percent to $47.4 million from $50.7 million.
Company officials blamed the slowing economy and the worst winter in many years. Soft freight demand caused a combination of fewer loads, rate pressure, higher non-revenue miles, and more layovers. The harsh winter added to the problem, increasing fuel, towing, and repair expense, making deliveries difficult, and further slowing the activity of customers in Smithway's core building materials group.
"All in all, we are experiencing one of the most challenging trucking environments I can remember," said Chairman, President, and CEO William G. Smith.
The good news is, as trucking companies go out of business, the driver shortage appears to be easing, Smith said. "We have experienced record driver orientation classes and our tractor fleet is practically fully seated with drivers for the first time in several years."
Boyd Bros. Transportation, Clayton, Ala., saw lower revenues and a net loss for the quarter - although the loss was much less of one than the fourth quarter preceding it.
Operating revenues dropped 11% to $30.3 million, versus $33.8 million last year. The net loss of $292,902 was a significant improvement from the loss reported in the fourth quarter of 2000. In the first quarter of 2000, Boyd Bros. had net income of $230,781.
The decline in revenues from year to year was primarily attributable to the company's Welborn division, which closed its logistics and specialized operations in late 2000. Freight volume for both the Boyd and Welborn divisions was slow for the quarter as a whole, although loads and revenues in both divisions began to strengthen in March, as expected. Both the Boyd and Welborn divisions were profitable for the month of March.
"Although our first quarter reflected lower revenues and a loss for the period, we continue to see encouraging signs of a rebound in general business conditions and our operating outlook," said Gail Cooper, president and CEO. Freight volume is approaching current capacity, she said.
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