This was a good week for management at Overnight Transportation, with the trucking company registering its best quarter since 1994 and the Teamsters Union pulling out of a long, drawn-out strike against the Richmond, Va.-based firm.
Overnite Transportation reported net income of $18.6 million (up 21%) on revenue of $349.6 million (up 7%), from the $15.4 million and $327.8 million, respectively, reported for the same period last year.
Meanwhile, the Teamsters ended their strike, a contentious three-year battle to unionize the trucking company.
Union leaders had hoped for a quick victory, but the company fought unionization attempts, and the strike was combative, with both sides alleging bribes, property destruction and violence.
Following the favorable financial announcement, Overnite President Leo Suggs said that taking care of employees "has allowed Overnite to thrive even as the Teamsters have tried to hurt this company and its people."
The Teamsters blame their loss on weak labor laws and the Bush administration, which they said failed to enforce those laws. The union contends Overnite refused to recognize the union and negotiate, and it punished and fired workers sympathetic to union efforts.
The Associated Press said the Teamsters began efforts to unionize the company eight years ago. Workers in 26 of Overnite's 170 terminals voted to be represented by the Teamsters, but a contract was never reached with the company and the union called a strike three years ago this week.
The 13,000-employee Overnite Transportation is a subsidiary of Union Pacific Corp. and one of the largest companies without a union contract. About 2,000 workers initially honored the strike, called over unfair labor practice claims, but most have returned to work.
Overnight's third-quarter net income excludes a one-time after tax benefit of $33.7 million from a tax settlement with the Internal Revenue Service that permitted a portion of Union Pacific's 1986 Overnite acquisition costs to become tax deductible. Including this tax settlement, Overnite Holding reported third quarter net income of $52.3 million.
Net income year-to-date, including the one-time tax settlement, is $75.7 million, a 109% increase over the $36.3 million reported for the first nine months of 2001.
"While the economy remains weak, the demise of a large LTL competitor provided incremental tonnage in September and supported firming prices," Suggs said.
"Managing the mix of freight, and our ability to maintain service while controlling costs has allowed us to increase the return on our business," said Suggs.
Overnite Holding Inc., is the parent company of Overnite Corp., which owns both Overnite Transportation Co. and Motor Cargo Industries. A subsidiary of Union Pacific Corp., Overnite Holding Inc.'s network of less-than-truckload carriers offers both regional and nationwide coverage. Overnite's more than 200 facilities serve all 50 states, all Canadian provinces, Mexico, the U.S. Virgin Islands, Puerto Rico and Guam.
Overnite Transportation reported net income of $18.6 million (up 21%) on revenue of $349.6 million (up 7%), from the $15.4 million and $327.8 million, respectively, reported for the same period last year.
Meanwhile, the Teamsters ended their strike, a contentious three-year battle to unionize the trucking company.
Union leaders had hoped for a quick victory, but the company fought unionization attempts, and the strike was combative, with both sides alleging bribes, property destruction and violence.
Following the favorable financial announcement, Overnite President Leo Suggs said that taking care of employees "has allowed Overnite to thrive even as the Teamsters have tried to hurt this company and its people."
The Teamsters blame their loss on weak labor laws and the Bush administration, which they said failed to enforce those laws. The union contends Overnite refused to recognize the union and negotiate, and it punished and fired workers sympathetic to union efforts.
The Associated Press said the Teamsters began efforts to unionize the company eight years ago. Workers in 26 of Overnite's 170 terminals voted to be represented by the Teamsters, but a contract was never reached with the company and the union called a strike three years ago this week.
The 13,000-employee Overnite Transportation is a subsidiary of Union Pacific Corp. and one of the largest companies without a union contract. About 2,000 workers initially honored the strike, called over unfair labor practice claims, but most have returned to work.
Overnight's third-quarter net income excludes a one-time after tax benefit of $33.7 million from a tax settlement with the Internal Revenue Service that permitted a portion of Union Pacific's 1986 Overnite acquisition costs to become tax deductible. Including this tax settlement, Overnite Holding reported third quarter net income of $52.3 million.
Net income year-to-date, including the one-time tax settlement, is $75.7 million, a 109% increase over the $36.3 million reported for the first nine months of 2001.
"While the economy remains weak, the demise of a large LTL competitor provided incremental tonnage in September and supported firming prices," Suggs said.
"Managing the mix of freight, and our ability to maintain service while controlling costs has allowed us to increase the return on our business," said Suggs.
Overnite Holding Inc., is the parent company of Overnite Corp., which owns both Overnite Transportation Co. and Motor Cargo Industries. A subsidiary of Union Pacific Corp., Overnite Holding Inc.'s network of less-than-truckload carriers offers both regional and nationwide coverage. Overnite's more than 200 facilities serve all 50 states, all Canadian provinces, Mexico, the U.S. Virgin Islands, Puerto Rico and Guam.
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