The effects of a slow economy and the terrorist attacks of Sept. 11 are reflected in third-quarter financial reports of trucking companies, but many are doing better than they were earlier this year.
Arkansas Best announced third quarter net income of $13 million, compared to third quarter 2000 net income of $23.3 million. This year's third quarter earnings per share figure includes an after-tax gain of $2.8 million resulting from the sale of G.I. Trucking Company.
"Considering the economic effects of a significant business downturn and the tragic events resulting from the Sept. 11 terrorist attacks, I am pleased with our company's third quarter results," said Robert A. Young III, Arkansas Best president and CEO. "ABF produced an operating ratio of 93.3%, once again leading the long-haul, LTL industry. Clipper had operating income of $249,000 in a highly competitive operating environment."
Third quarter 2001 revenues at ABF Freight System were $330 million compared to $358 million during the third quarter of 2000. Third quarter operating income at ABF was $22.1 million compared to $41.2 million during the third quarter of 2000. ABF's third quarter 2001 operating ratio of 93.3% compares to a figure of 88.5% in last year's third quarter.
"Comparisons with last year's results appear to be generally unfavorable," said Young. "However, it is important to remember that last year's third quarter provided one of the best operating environments our industry has ever experienced. In contrast, this year's third quarter was one of our industry's most difficult operating environments."
Landstar System reported 2001 third quarter net income of $11.9 million, compared to net income of $11.5 million in the 2000 third quarter. The 2000 third quarter included a $2.2 million pre-tax non-recurring charge for the withdrawal from a union-sponsored pension plan.
Revenue was $355.7 million for the third quarter compared with $352.4 million for the same period a year ago.
Landstar's carrier group of companies generated $276.5 million of revenue in the 2001 third quarter compared with $277.6 million in the 2000 quarter. In the 2001 and 2000 third quarters, the carrier group invoiced customers $8 million and $8.3 million, respectively, in fuel surcharges that were passed 100 percent to its owner-operators and excluded from revenue. Landstar's multimodal services group of companies reported revenue of $73.2 million in the 2001 third quarter compared to $68.7 million in the 2000 quarter.
"Landstar was able to increase its 2001 third quarter revenue over the 2000 third quarter despite a difficult operating environment, as brokerage revenue
increased 15 percent which more than offset decreased flatbed revenue," said Landstar Chairman and CEO Jeff Crowe.
"At the end of the third quarter there were 8,594 trucks in the Landstar
system,” says Crowe. “This represents an increase of 114 trucks since the end of the 2001 second quarter. Landstar is on track to achieve its goal of replacing all of its lost truck capacity from the first four and one half months of the year. I remain confident in our ability to rebuild truck count to its 2000 year-end level."
Marten Transport reported revenue of $70.8 million for the third quarter, an increase of 8.4% from $65.3 million in the third quarter last year. Third-quarter net income was $1.62 million, compared with $1.7 million in the third quarter of 2000. Operating income for the third quarter was $3.7 million, compared with $4.3 million last year.
"We're pleased to report a continuation of strong equipment utilization levels during the third quarter, leading to our best-ever revenue performance for the period," said Randy Marten, president and chairman of the board. "Trips per week, revenue per tractor per week, miles per tractor per week -- all of these key productivity measures were up from the previous year. Revenue per mile held even and we again showed improvement in our historically low empty mile percentage.
"In the prevailing economic climate, however, we have not been able to achieve the freight rate increases necessary to cover the cost increases we are incurring -- such as the continuing increase in the cost of insurance," he said, which is reflected in a higher operating ratio and a 5% decline in third-quarter net income.
Overnite Transportation reported net income for the third quarter of $14.4 million, off 3% from the comparable period last year.
Operating income was $18.3 million. Operating revenues of $292.1 million represented a $5 million, or 1.7 percent, increase over the $287.1 million reported in the third quarter of 2000.
"Our ability to quickly adapt to our customers' changing needs while maintaining service levels that have been recognized as some of the best in the industry, have allowed Overnite to perform well while many others are struggling to keep their heads above water in the present tough economic conditions," said Overnite Chairman Leo Suggs.
Transport Corporation of America announced revenues for the third quarter of $70.3 million, compared with 2000 third quarter revenues of $73.5 million. Third quarter net income was $478,000, compared with 2000 third quarter net income of $1.6 million.
"During the third quarter, we again improved both our revenue and profitability performance from earlier this year," said Robert J. Meyers, president and CEO. "Many of our larger customers and geographic regions continue to experience the full effects of the economic slowdown, which reduces demand for our services. However, we continue to execute on our strategy of expanding our business with other existing accounts, adding new customers that contribute to profitability, and managing our expenses carefully. Additionally, we extended our debt reduction trend for the sixth straight quarter."
Transport America also announced it has secured a new $40 million line of credit facility, replacing its previous line of credit agreement, which was set to expire early next year. The new facility expires in October of 2004 and is secured by accounts receivable and certain revenue equipment.
United Parcel Service reported a gain in third quarter revenue and continued growth in international volume despite the tragedy of Sept. 11, which interrupted what had been a solid performance for the period.
For the third quarter of the year, revenues totaled $7.5 billion, up 1.5% compared to the same period a year earlier. Consolidated operating profits, however, dropped 17.4% to $943 million. Net income was $568 million versus $702 million in the third quarter of 2000.
Operating income included a $37 million credit for losses during September, which UPS expects will be reimbursed under the Airline Stabilization Act. The expected reimbursement reflects only a portion of the total estimated $130 million impact in September.
The results reflect an overall decline in volume for the quarter, with total package volume dropping 2.9% to 13.1 million per day. But outside the United States, UPS's international export volume grew an industry-leading 8%, led by a strong 17% gain in European export volume.
"Prior to Sept. 11, UPS was showing growth in its domestic air business and was on track to deliver on the financial guidance we had provided, managing through some difficult economic conditions," said UPS Chief Financial Officer Scott Davis. "The events of that day significantly altered our business performance. Nevertheless, highly effective cost controls in place for the last two quarters and growth efforts mitigated the impact.
USFreightways reported income for the third quarter of $13.2 million before special pre-tax charges of $5.9 million at USF Worldwide, and net income of $9.7 million after the special charge. Revenue for the third quarter was $618.6 million compared to $642.2 million reported for the third quarter a year ago.
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Arkansas Best announced third quarter net income of $13 million, compared to third quarter 2000 net income of $23.3 million. This year's third quarter earnings per share figure includes an after-tax gain of $2.8 million resulting from the sale of G.I. Trucking Company.
"Considering the economic effects of a significant business downturn and the tragic events resulting from the Sept. 11 terrorist attacks, I am pleased with our company's third quarter results," said Robert A. Young III, Arkansas Best president and CEO. "ABF produced an operating ratio of 93.3%, once again leading the long-haul, LTL industry. Clipper had operating income of $249,000 in a highly competitive operating environment."
Third quarter 2001 revenues at ABF Freight System were $330 million compared to $358 million during the third quarter of 2000. Third quarter operating income at ABF was $22.1 million compared to $41.2 million during the third quarter of 2000. ABF's third quarter 2001 operating ratio of 93.3% compares to a figure of 88.5% in last year's third quarter.
"Comparisons with last year's results appear to be generally unfavorable," said Young. "However, it is important to remember that last year's third quarter provided one of the best operating environments our industry has ever experienced. In contrast, this year's third quarter was one of our industry's most difficult operating environments."
Landstar System reported 2001 third quarter net income of $11.9 million, compared to net income of $11.5 million in the 2000 third quarter. The 2000 third quarter included a $2.2 million pre-tax non-recurring charge for the withdrawal from a union-sponsored pension plan.
Revenue was $355.7 million for the third quarter compared with $352.4 million for the same period a year ago.
Landstar's carrier group of companies generated $276.5 million of revenue in the 2001 third quarter compared with $277.6 million in the 2000 quarter. In the 2001 and 2000 third quarters, the carrier group invoiced customers $8 million and $8.3 million, respectively, in fuel surcharges that were passed 100 percent to its owner-operators and excluded from revenue. Landstar's multimodal services group of companies reported revenue of $73.2 million in the 2001 third quarter compared to $68.7 million in the 2000 quarter.
"Landstar was able to increase its 2001 third quarter revenue over the 2000 third quarter despite a difficult operating environment, as brokerage revenue
increased 15 percent which more than offset decreased flatbed revenue," said Landstar Chairman and CEO Jeff Crowe.
"At the end of the third quarter there were 8,594 trucks in the Landstar
system,” says Crowe. “This represents an increase of 114 trucks since the end of the 2001 second quarter. Landstar is on track to achieve its goal of replacing all of its lost truck capacity from the first four and one half months of the year. I remain confident in our ability to rebuild truck count to its 2000 year-end level."
Marten Transport reported revenue of $70.8 million for the third quarter, an increase of 8.4% from $65.3 million in the third quarter last year. Third-quarter net income was $1.62 million, compared with $1.7 million in the third quarter of 2000. Operating income for the third quarter was $3.7 million, compared with $4.3 million last year.
"We're pleased to report a continuation of strong equipment utilization levels during the third quarter, leading to our best-ever revenue performance for the period," said Randy Marten, president and chairman of the board. "Trips per week, revenue per tractor per week, miles per tractor per week -- all of these key productivity measures were up from the previous year. Revenue per mile held even and we again showed improvement in our historically low empty mile percentage.
"In the prevailing economic climate, however, we have not been able to achieve the freight rate increases necessary to cover the cost increases we are incurring -- such as the continuing increase in the cost of insurance," he said, which is reflected in a higher operating ratio and a 5% decline in third-quarter net income.
Overnite Transportation reported net income for the third quarter of $14.4 million, off 3% from the comparable period last year.
Operating income was $18.3 million. Operating revenues of $292.1 million represented a $5 million, or 1.7 percent, increase over the $287.1 million reported in the third quarter of 2000.
"Our ability to quickly adapt to our customers' changing needs while maintaining service levels that have been recognized as some of the best in the industry, have allowed Overnite to perform well while many others are struggling to keep their heads above water in the present tough economic conditions," said Overnite Chairman Leo Suggs.
Transport Corporation of America announced revenues for the third quarter of $70.3 million, compared with 2000 third quarter revenues of $73.5 million. Third quarter net income was $478,000, compared with 2000 third quarter net income of $1.6 million.
"During the third quarter, we again improved both our revenue and profitability performance from earlier this year," said Robert J. Meyers, president and CEO. "Many of our larger customers and geographic regions continue to experience the full effects of the economic slowdown, which reduces demand for our services. However, we continue to execute on our strategy of expanding our business with other existing accounts, adding new customers that contribute to profitability, and managing our expenses carefully. Additionally, we extended our debt reduction trend for the sixth straight quarter."
Transport America also announced it has secured a new $40 million line of credit facility, replacing its previous line of credit agreement, which was set to expire early next year. The new facility expires in October of 2004 and is secured by accounts receivable and certain revenue equipment.
United Parcel Service reported a gain in third quarter revenue and continued growth in international volume despite the tragedy of Sept. 11, which interrupted what had been a solid performance for the period.
For the third quarter of the year, revenues totaled $7.5 billion, up 1.5% compared to the same period a year earlier. Consolidated operating profits, however, dropped 17.4% to $943 million. Net income was $568 million versus $702 million in the third quarter of 2000.
Operating income included a $37 million credit for losses during September, which UPS expects will be reimbursed under the Airline Stabilization Act. The expected reimbursement reflects only a portion of the total estimated $130 million impact in September.
The results reflect an overall decline in volume for the quarter, with total package volume dropping 2.9% to 13.1 million per day. But outside the United States, UPS's international export volume grew an industry-leading 8%, led by a strong 17% gain in European export volume.
"Prior to Sept. 11, UPS was showing growth in its domestic air business and was on track to deliver on the financial guidance we had provided, managing through some difficult economic conditions," said UPS Chief Financial Officer Scott Davis. "The events of that day significantly altered our business performance. Nevertheless, highly effective cost controls in place for the last two quarters and growth efforts mitigated the impact.
USFreightways reported income for the third quarter of $13.2 million before special pre-tax charges of $5.9 million at USF Worldwide, and net income of $9.7 million after the special charge. Revenue for the third quarter was $618.6 million compared to $642.2 million reported for the third quarter a year ago.
"Taking into account the op
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